KUALA LUMPUR: The Armed Forces Fund Board (LTAT) assumes the role of the buyer for Boustead Plantations Bhd (BPlant) to safeguard market integrity and fairness, according to chief executive Datuk Ahmad Nazim Abdul Rahman.
Under the strategic collaboration agreement (SCA), LTAT was a party to the joint offer with Boustead Holdings Bhd and Kuala Lumpur Kepong Bhd (KLK) for the remaining shares in BPlant.
"We stepped in to be the buyer of BPlant to mitigate any potential legal risk and to protect the integrity and the principle of fairness imbued in our capital market.
"This, as advised by our lawyers, gave rise to a legitimate expectation on the part of the minority shareholders that the mandatory general offer (MGO) would proceed," he told Business Times.
Ahmad Nazim added that LTAT has sufficient funding to undertake the MGO.
Disclosing the reason for the collapsed deal, he said it was due to Boustead's inability to meet the conditions precedent to the deal.
Therefore, the parties mutually agreed to terminate the SCA.
Furthermore, Ahmad Nazim said BPlant is a part and parcel of the whole scheme to turn around Boustead Group.
He emphasised that this is the only game-changer that will put LTAT on the path of sustainability.
"Now that the restructuring of BPlant is taking a different trajectory, we would need to go back to the drawing board to reformulate our strategy and approach to BPlant.
"The goals and objectives remain the same, but there are many ways to skin the cat," he said.
On Oct 5, LTAT said it was planning to buy out BPlant at an offer price of RM1.55 per share.
This came immediately after the termination of the proposed disposal of a 33 per cent stake plus one share in BPlant by LTAT and BHB to KLK for RM1.15 billion on Oct 4. - NST
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