Boustead-KLK deal terminated with immediate effect on Oct 4

KUALA LUMPUR: Lembaga Tabung Angkatan Tentera (LTAT), Boustead Holdings Bhd (BHB) and Kuala Lumpur Kepong Bhd (KLK) have agreed not to proceed with KLK’s RM1.15 billion acquisition of a 33 per cent stake in Boustead Plantations Bhd (BPlant).

BPlant and KLK said that "the condition precedent under the strategic collaboration agreement (SCA) will not be satisfied by the cut-off date of Oct 6, 2023.”

"In the circumstances, the parties mutually agree that the SCA shall be terminated with immediate effect on Oct 4, 2023,” both companies said in their respective filings with Bursa Malaysia today.

As a result of the termination, RHB Investment Bank Bhd, on behalf of KLK, said BHB shall return the deposit equivalent to about RM229.15 million to KLK within 14 business days from today, "or such other later date as may be agreed between the parties.”

Both KLK and BPlant said the SCA termination is not expected to have any material effect on their earnings, earnings per share, net asset (NA) and NA per share for the financial year ending Sept 30, 2024 (for KLK) and the financial year ending Dec 31, 2023 (for BPlant).

BPlant is controlled by LTAT and its wholly-owned unit BHB.

On Aug 24, 2023, KLK proposed to acquire 739.20 million shares, or a 33 per cent stake and one share of BPlant from BHB for RM1.15 billion. KLK also proposed a mandatory take-over offer to acquire all the remaining BPlant shares not already owned by KLK, BHB and LTAT resulting from the proposed acquisition at RM1.55 per BPlant share.

The offer price values BPlant at RM3.47 billion.

In a statement on Sept 11, 2023, KLK announced that the parties involved had agreed to extend the cut-off date to Sept 22, 2023. Subsequently, the date was further extended to Oct 6, 2023. - Bernama

Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In Business News

Ringgit opens higher against US dollar
Bitcoin breaks US$40,000 as momentum builds
Grey Malaysia named Agency of the Year at Kancil Awards 2023
Ringgit set to strengthen against US dollar in 2024
FBM KLCI slips as investors take profit
Trading ideas: Pansar, Apex, Citaglobal, Crest Builder, Axiata, Pavilion REIT, Bintai Kinden, Willowglen
Lenders pledge support for developers
Islamic finance advancement a springboard to green finance
Trapper Group to strengthen leadership by hiring industry experts
Countries promise clean energy boost at COP28

Others Also Read