Boustead Holdings Bhd’s share price lost support this morning, plunging as much as 19.7% or 14 sen to a low of 57 sen, on news that its controlling shareholder Lembaga Tabung Angkatan Tentera (LTAT) had decided to abort the privatisation plan.
AFTER two deadline extensions, Lembaga Tabung Angkatan Tentera (LTAT) has decided to take its listed flagship group Boustead Holdings Bhd private, say sources. The armed forces fund has until Feb 2 to make up its mind on the proposed privatisation.
Sources with knowledge of the matter tell The Edge that instead of LTAT making a general offer, the privatisation of its 59.43%-owned subsidiary Boustead can be done via a selective capital reduction and repayment (SCR) exercise. The armed forces fund is also likely to raise its indicative price of 80 sen per share that was proposed in May last year.
“The offer price could potentially be more than 90 sen per share, or maybe even RM1 per share, taking into account the fact that the value of Boustead’s stakes in three public-listed companies Boustead Plantations Bhd (57.42%), Pharmaniaga Bhd (55.93%) and Affin Bank Bhd (20.73%) have increased over the past few months,” says a source.
Boustead Heavy Industries Corp Bhd (BHIC) today handed over the littoral mission ship (LMS) named Sundang to the Government through the Royal Malaysian Navy (RMN). BHIC said this is the second of four units of LMS being built by Wuchang Shipbuilding Industrial Group Shipyard (WSIG) in Shuangliu, China, under a contract signed in 2017 between Malaysia’s defence ministry and Boustead Naval Shipyard Sdn Bhd (BNS), with the cooperation of China Shipbuilding and Offshore International Co Ltd
KUALA LUMPUR (Jan 14): Based on corporate announcements and news flow today, stocks that may be in focus tomorrow (Jan 15) include: FGV Holdings Bhd, TA Enterprise Bhd, AirAsia X Bhd (AAX), Pharmaniaga Bhd, Boustead Heavy Industries Corp Bhd (BHIC), See Hup Consolidated Bhd, Tek Seng Holdings Bhd, JCY International Bhd, George Kent (Malaysia) Bhd, Dayang Enterprise Holdings Bhd, Red Ideas Holdings Bhd, Jiankun International Bhd and Perak Transit Bhd.
The Federal Land Development Authority (Felda) bought 22 million shares in
FGV Holdings Bhd in the open market yesterday for RM28.38 million as part of its efforts to take the plantation company private. The shares were bought at RM1.29 per share, slightly lower than the RM1.30 cash offer Felda made for FGV shares.
BOUSTEAD Holdings Bhd’s new group managing director Datuk Seri Mohammed Shazalli Ramly, who stepped into his new role last Tuesday (Dec 1), has his work cut out for him, and that is to steer the diversified conglomerate back to profitability by 2023.
Shazalli is the third MD to helm the group in three years after Tan Sri Lodin Wok Kamaruddin and Datuk Seri Amrin Awaluddin. In a statement issued on Nov 27, Boustead hailed Shazalli as a “turnaround specialist”. Still, most of Shazalli’s career has been in telecommunications, more recently as the MD and CEO of Telekom Malaysia Bhd.
He inherits an organisation that has significant legacy issues, which its chairman Datuk Seri Mohamed Khaled Nordin had previously identified as investments made in the past that do not have the right focus in making them profitable, mismatch of funding between long-term investment and short-term debts, and a convoluted organisational structure where there are cross-holdings in Boustead subsidiaries