Boustead On Track For Plantation IPO
KUALA LUMPUR, December 5, 2013 – Boustead Holdings Berhad (Boustead Group) is on course with its continuous efforts to strengthen its businesses particularly its Plantation division. The outcome of the Group’s Extraordinary General Meeting (EGM) would mark another milestone in the conglomerate’s plans to enlist its Plantation division via an enlarged Boustead Plantations Berhad (BPB) on Bursa Malaysia..
Subject to shareholders’ approval for the privatisation of Al-Hadharah Boustead REIT (Boustead REIT), the Group will undertake a series of corporate exercises leading up to the redemption of the REIT’s units and the de-listing of Boustead REIT.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Group Managing Director, Boustead Holdings Berhad at the Group’s EGM said, “With the proposed privatisation of Boustead REIT, this will pave the way for Boustead to consolidate all of its plantation assets into one entity with a view towards the listing of our plantation business.”
“With the proposed listing, the total oil palm plantation land bank of Boustead Plantation will increase to 83,000 hectares with the prospect that this combined hectarage will produce over 1.2 million metric tonnes of fresh fruit bunches.”
“Given our track record in the plantation sector coupled with the expertise that we have in hand, we are optimistic that the next few years will be exciting for the Group. Furthermore, this corporate exercise represents the Group’s strategic and long-term plans driven by our ultimate objective of delivering enhanced shareholder value,” concluded YBhg Tan Sri Dato’ Seri Lodin.
Subject to shareholders’ approval, following the EGM the unitholders except for BPB will receive a cash repayment and a special dividend amounting to a total of RM2.10 per unit. This represents an attractive premium of 16.02% over the unaudited net asset value of Boustead REIT as at 30 September 2013 of RM1.81 per unit, or a premium of 13.5% above Boustead REIT’s five-day volume weighted average price of RM1.85 as at 12 July 2013, being the last trading day of Boustead REIT’s units prior to the suspension. Subsequently, Boustead REIT will be converted from a collective investment scheme to a private property trust with BPB as the sole beneficiary.
Since its inception as a modest trading entity more than 180 years ago, the Boustead Group has grown by leaps and bounds to comprise more than 90 subsidiary and associate companies, and has substantial interests in various sectors of the Malaysian economy. The Boustead Group's operations are focused in six key areas; plantation, heavy industries, property, finance & investment, trading & industrial and pharmaceutical. As at 30 September 2013, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM4.75 billion. Market capitalisation is currently in excess of RM5.4 billion.
Forward looking statements
This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Boustead Holdings Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
on behalf of: : Boustead Holdings Berhad
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