BPlant, KLK clarify Boustead-KLK deal is still pending final decision

KUALA LUMPUR: The proposed sale of a 33 per cent stake in Boustead Plantations Bhd (BPlant) by the Armed Forces Fund Board (LTAT) and Boustead Holdings Bhd to Kuala Lumpur Kepong Bhd (KLK) is still on the table, according to both BPlant and KLK.

In separate filings with Bursa Malaysia today, BPlant and KLK said they have been informed that the proposed strategic collaboration is still pending a final decision between the transacting parties, and that the cut-off date for fulfilling the condition precedent is on Oct 6, 2023.

BPlant said it was informed this by its controlling shareholders, namely Boustead Holdings and LTAT, while RHB Investment Bank, on behalf of KLK’s board, said the information was obtained after due and diligent enquiry with all the directors, major shareholders and all such other persons reasonably familiar with the matter.

Both BPlant and KLK were replying to a Bursa Malaysia Securities Bhd query on a report which appeared in The Edge CEO Morning Brief today titled "RM1.15 bil Boustead-KLK deal falls through, say sources; govt seeks RM2 bil to ‘save’ LTAT”.

RHB Investment, which is KLK’s principal adviser for the proposed corporate exercise, also highlighted a quote from the article, which was attributed to Prime Minister Datuk Seri Anwar Ibrahim, regarding the government’s intention to "help LTAT avoid losses.”

"The board wishes to clarify that the company had no advance notice of, and there was no confirmation of the government’s intention,” it said in the bourse filing.

The cut-off date to fulfil the condition precedent has been extended twice.

In a statement on Sept 11, KLK announced that the parties involved had agreed to extend the cut-off date to Sept 22. Subsequently, the date was further extended to Oct 6. - Bernama

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