LTAT: No material development on Boustead privatisation


In a statement, LTAT said it had until Feb 2 to announce its decision on the proposed privatisation. “We wish to highlight that this notification does not amount to a firm intention that we will undertake the proposal."

PETALING JAYA: Lembaga Tabung Angkatan Tentera (LTAT) says there is “no material” development on a proposed plan to privatise Boustead Holdings Bhd.

In a statement, LTAT said it had until Feb 2 to announce its decision on the proposed privatisation.

“We wish to highlight that this notification does not amount to a firm intention that we will undertake the proposal.

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

LTAT would make announcements on any development in relation to the proposal.

LTAT revealed that it had intentions of privatising Boustead in July last year.

LTAT, which holds 59.4% stake in Boustead, said it is considering to make an offer of 80 sen per Boustead share to buy out the remaining shares it does not own in the company.

There have been two extensions since the first proposal was made.

It is noteworthy that the offer price is below Boustead’s net tangible assetbof RM1.74 per share. LTAT may face resistance from Boustead’s minority shareholders to sell their stake at 80 sen.

The second-largest shareholder of Boustead is Retirement Inc Fund, followed by the Employees Provident Fund.

Shares in Boustead closed unchanged at 76 sen yesterday.It was reported by a financial daily that LTAT may increase its offer price and would take three more weeks to make an announcement of its privatisation plan.

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