The move by LTAT to immediately step into the void left by KLK is to provide support to Boustead Holdings Bhd’s own debt rationalisation plan.
PETALING JAYA: The takeover of Boustead Plantations Bhd
(BPlant) by Lembaga Tabung Angkatan Tentera (LTAT) at an offer price of RM1.55 per share is deemed unfair, according to independent adviser Malacca Securities Sdn Bhd.
In a statement, the independent adviser said its decision was due to the offer price representing a discount of RM1.05 or 40.4% to the revalued net asset value of RM2.60 per BPlant share.
However, Malacca Securities added that the offer was reasonable, as it would provide an exit opportunity for its shareholders, adding that it had recommended that shareholders accept the offer.
“We wish to emphasise that whilst the offer is not fair, shareholders should consider that prior to the news report and notice, BPlant’s share price and volume were not trading at current levels since its listing on the Main Market of Bursa Securities on June 26, 2014.
“There is no assurance that it will continue to trade at current levels after the close of the offer,” it said.
Nonetheless, shareholders were advised to monitor BPlant’s share prices and consider disposing of their shares in the open market should it exceed the offer price.
The offer will remain open for acceptances until 5pm on Dec 22, 2023 as the first closing date.
It added that if shareholders decide not to accept the offer, they should note that they may not be able to readily realise their investment in BPlant in the open market at current prices, especially if the quantum of BPlant shares held by such them are sizeable.
“There is also no assurance that BPlant shares will maintain at the prevailing market prices after the closing date,” it said.
BPlant is principally involved in cultivation of oil palm, production and sale of fresh fruit bunches, crude palm oil and palm kernel, plantation management and engineering consultancy in Malaysia.
