Boustead Holdings relisting not on the horizon, says Khaled

 The defence minister says relisting the company is inconsistent with its strategic mandate and can affect national security interests.

Defence minister Khaled Nordin said Boustead Holdings Bhd’s primary role was to drive the national defence industry’s development and to support housing for the armed forces. (Facebook pic)

PETALING JAYA:

 The defence ministry does not plan to relist Boustead Holdings Bhd (BHB) on the stock exchange, says minister Khaled Nordin.

Khaled said his ministry viewed the relisting of BHB as inconsistent with the company’s strategic mandate, particularly in terms of operational flexibility, long-term planning and national security interests.

In a written parliamentary reply to Dr Halimah Ali (PN-Kapar), Khaled said BHB’s direction had been set as a strategic company under the Armed Forces Fund Board (LTAT) and defence ministry.

He said BHB’s primary role was to drive the development of the national defence industry and to support housing for the armed forces.

“Accordingly, the defence ministry is of the view that the relisting of BHB on the stock exchange does not align with its strategic mandate,” he said.

Halimah had asked the minister about the latest status of efforts to relist BHB on Bursa Malaysia Securities Bhd.

BHB was incorporated as a public limited company in 1961. Since its listing, it expanded into plantation, property, pharmaceuticals, heavy industries as well as trading, finance and investment.

LTAT took over BHB in June 2023 and delisted the company from the official list of Bursa to take the firm private.

LTAT had announced that it planned to reduce its asset allocation in Boustead-related investments to 15% by 2025 from 39% at the time as part of its Strategic Plan 2023–2025 to become a sustainable provident fund.

However, the board was initially expected to relist BHB eventually.

Asked about efforts to reduce LTAT’s shareholdings in the firm, Khaled said the board had taken steps to transfer suitable assets from BHB to LTAT, such as Pharmaniaga Bhd, as part of its investment risk management strategy.

He said LTAT was also implementing a revised strategic asset allocation (SAA) framework that had been reviewed and approved by the defence and finance ministries.

This, he said, was aimed at ensuring LTAT’s sustainability and long-term viability. - FMT