Privatisation of Boustead Holdings still in the air, LTAT says

  • Corporate News
  • Friday, 26 Jun 2020

Boustead Holdings has a range of core businesses.

KUALA LUMPUR: After nearly a month, Lembaga Tabung Angkatan Tentera (LTAT) says there is no development on a possible privatisation of the loss-making Boustead Holdings Bhd.

In a statement issued on Friday it said since the press notice on the proposal dated May 28, “there has been no material development” of the proposal.

LTAT, which holds a 59% stake in Boustead, had then stated it was considering a proposal to privatise the company at 80 sen a share.

At 4.32pm, the share price was up 0.5 sen to 63 sen.

The armed forces fund board also reiterated the proposal was subject, to amongst others, the finalisation of the structure of the proposal, the funding and required regulatory approval.

It said the notification does not amount to a firm intention that it would undertake the proposal.

“Accordingly, there can be no certainty that we will proceed with the proposal,” LTAT said.

In the first quarter ended March 31, 2020, its losses widened compared to the same period a year ago as the group took a beating from the coronavirus (Covid-19) pandemic.

It posted a loss of RM73.1mil for the first quarter ended March 31, compared with the RM22.4mil loss a year earlier. Its revenue fell by 10% to RM2.26bil from RM2.51bil previously.

Boustead said its hotels, heavy industries, properties and petrol stations businesses were hit from the movement control order (MCO) as business and household activity froze from the measures to contain the spread of Covid-19.

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