PETALING JAYA: Boustead Heavy Industries Corp
Bhd (BHIC) is disposing of 2.55 million shares (or a 51% stake) in Contraves Advanced Devices Sdn Bhd (CAD) to Germany-based Rheinmetall AG for RM54mil.
In a filing with Bursa Malaysia, BHIC said the stake disposal provides an opportunity for the company to fully exit and monetise its investment in CAD, which is involved in the manufacturing of industrial printed circuit board assemblies.
“The proceeds from the proposed disposal will enable the group to maintain adequate reserves which can be readily deployed to capitalise on future viable investments as part of business expansion in a timely manner as and when such opportunities arise.”
In line with its broader growth objectives to develop sustainable business and earnings to the group in the future, BHIC said the proposed disposal is being undertaken as a group-wide transformation initiative to pave the way for BHIC group to streamline its entities to operate and grow more efficiently.
It said the exercise will also allow the group to reprioritise its objective to explore new viable opportunities as well as implement value creation that will expand its normal course of business, specifically in the defence sector and also into commercial and aerospace segments.
Separately, Affin Bank Bhd’s controlling shareholders, Lembaga Tabung Angkatan Tentera and Boustead Holdings Bhd, completed the sale and transfer of shares in the banking group to the Sarawak state government on Nov 27 via a direct business transaction.
In a filing with Bursa Malaysia, Affin Bank noted that the shares were transferred to SG Assetfin Holdings Sdn Bhd, a wholly-owned special purpose vehicle of State Financial Secretary, Sarawak, which now holds 31.25% of the bank.
LTAT divested a 6.87% stake which now leaves it with a 22.01% equity in Affin Bank while Boustead sold 20.08% to the SPV. The sale price of the shares was not disclosed. Boustead also sold some 12. 4 million shares in the open market and now has no equity stake in the bank.
