LTAT disposes entire 8% direct stake in BHIC

 

BHIC has executed debt settlement agreements with Affin Bank, MBSB Bank, AmBank Islamic, and Boustead Holdings. (Boustead Heavy Industries pic)

PETALING JAYA: The Armed Forces Fund Board (LTAT) has sold its entire direct stake of 8.16% or 20.27 million shares in shipbuilder Boustead Heavy Industries Corp Bhd (BHIC).

However, it still maintains an indirect stake held via its wholly owned subsidiary Boustead Holdings Bhd (BHB), which has 161.5 million shares or a 64.99% stake in the group.

BHIC said in a bourse filing today that LTAT disposed its entire direct stake yesterday to assist BHIC in “meeting the public shareholding spread requirement” after the issuance of new BHIC shares to three lenders and BHB under the proposed debt settlement announced by the group on Dec 6.

Under the plan, BHIC will settle RM183.26 million worth of debts to Affin Bank Bhd, MBSB Bank Bhd and AmBank Islamic Bhd via cash payment, as well as the issuance of 68.9 million ordinary shares, and Class A Islamic and conventional redeemable convertible preference shares (RCPS).

BHIC is also settling RM234 million worth of debt to BHB via the issuance of ordinary shares, as well as subordinated Class B and Class C RCPS to BHB.

All of the preference shares are convertible to ordinary shares on a one-to-one basis, with no conversion deadline, it said.

The ordinary shares issuance will see BHB’s stake in BHIC raised to 72.38%, while AmBank Islamic will hold (4.96%), MBSB (4.92%) and Affin (2.33%).

In a separate filing today, BHIC said it had executed debt settlements with the three lenders and BHB. It also amended its constitution to facilitate the issuance of redeemable convertible preference shares, both conventional and Islamic, as part of the settlement.

BHIC said it executed an agreement with Affin for the part settlement of the estimated outstanding amount owed to Affin under its existing facilities as of Dec 31, 2023 of up to RM30 million.

It also executed an agreement with MBSB for the part settlement of the outstanding amount owed to MBSB under its existing facilities of up to RM63.26 million.

BHIC and AmBank Islamic also executed an agreement for the part settlement of the estimated outstanding amount owed to the latter of up to RM90 million.

The group also executed a full settlement of the RM234 million owed to BHB.

BHIC’s shares closed 3.5 sen or 6.36% higher at 58 sen, valuing the group at RM144 million. - FMT