Thursday, December 19

LTAT Commits to Boustead Plantations Acquisition at RM1.55 per Share

Lembaga Tabung Angkatan Tentera (LTAT) has officially fulfilled its commitment to acquire Boustead Plantations Bhd (BPlant) shares, solidifying the deal after a prior arrangement with Kuala Lumpur Kepong Bhd (KLK).

In a recent exchange filing, BPlant confirmed the receipt of LTAT’s unconditional mandatory takeover offer at RM1.55 per share. The agreement stems from LTAT’s entry into an unconditional share sale agreement with Boustead Holdings Bhd (BHB) on November 10. LTAT is set to acquire 739,199,966 BPlant shares, representing a 33% stake, for a cash consideration of RM1.146 billion, equivalent to RM1.55 per BPlant share.

Following the completion of this transaction, LTAT’s shareholding in BPlant will surge to 43.59%, a significant increase from the initial 10.59%. This triggers the mandatory takeover obligation for LTAT concerning other BPlant shares not yet in its possession.

The announcement follows the strategic collaboration agreement on August 24, involving LTAT, BHB, and KLK. In this arrangement, KLK proposed the acquisition of a 33% stake in BPlant shares from BHB at RM1.55 per share. Despite the termination of the strategic collaboration agreement on October 4, LTAT affirmed its commitment to proceed with a general offer for BPlant at RM1.55 per share, pending regulatory approvals.

This move underscores LTAT’s determination to fulfill its strategic objectives and financial commitments, showcasing its unwavering commitment to the acquisition and consolidation of Boustead Plantations.

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