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Boustead Holdings is said to mull options for palm oil unit


KUALA LUMPUR/SINGAPORE (July 7): Malaysian conglomerate Boustead Holdings Bhd is weighing options for its listed palm oil subsidiary including a sale, people with knowledge of the matter said.
The parent of Boustead Plantations Bhd is working with an adviser on the potential options, the people said, asking not to be named as the information is private. A plan could be implemented as soon as in the next few weeks, they said.
The holding company, which owns 57.4% of the subsidiary, could sell the unit or lease the plantations to third parties, the people said. Another option is to sell the individual plantations separately, one of the people said. ....

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With Boustead privatisation plan off, LTAT further away from goal of high dividend returns


IN 2019, Lembaga Tabung Angkatan Tentera (LTAT) set a goal to reduce its heavy dependence on dividend income from the listed Boustead group of companies as part of its plan to rebalance its investment portfolio. Two years on, it seems no closer to realising that goal after it aborted its plan to take Boustead Holdings Bhd private last week.
The proposed privatisation was mooted by LTAT last May in what was seen as an important step for the armed forces pension fund to support the potential restructuring of the loss-making diversified conglomerate’s businesses away from the scrutiny of public shareholders and regulators. The proposal is now entirely off the table and attention has now shifted to Boustead to turn itself around. ....

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Newsbreak: Sources: LTAT to take Boustead private via SCR and up takeover price


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. ....

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