Overwhelming Approval by Shareholders
for UAC Privatisation
KUALA LUMPUR, October10, 2012 Boustead Holdings Berhad (BHB) today received overwhelming approval by UAC Berhad (UAC) shareholders for the privatisation of UAC.
At its Extraordinary General Meeting (EGM) today, UAC shareholders approved BHB’s Proposed Selective Capital Reduction and Repayment Exercise and a Proposed Dividend by UAC. As a majority shareholder with a 65% stake in UAC, BHB abstained from voting in respect of its direct shareholding. With the shareholders’ approval today and subject to the High Court’s approval of the capital reduction scheme, UAC will become a wholly-owned subsidiary of Boustead Group. BHB has indicated that it does not intend to maintain the listing status of UAC on the Main Market of Bursa Malaysia once the exercise is completed.
The exercise will see entitled shareholders, excluding BHB, receiving a total of RM111.3 million. At RM4.30 per UAC share, the Deemed Offer Price represents a 52.48% premium over UAC’s closing market price as at the last market date prior to the announcement of the Proposals on 21 May 2012.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director of Boustead Holdings Berhad, said “We are indeed pleased with the outcome of today’s EGM as more than 97% of minority shareholders excluding BHB approved our proposal to take UAC private. We are glad to have offered shareholders a highly attractive premium for their investment in UAC and by virtue of their vote today, it clearly demonstrates their agreement towards this compelling opportunity that has been provided to them.”
“Over the last few years, UAC Berhad’s shares have been relatively illiquid and earnings have been somewhat stagnant. Hence, this opportunity to reward long-term shareholders who have supported UAC comes at a timely juncture. We would also like to reiterate that the staff force at UAC is very important to us and we intend to maintain this talent pool.”
The privatisation exercise is also expected to yield positive synergistic benefits, to BHB as UAC’s comprehensive range of products and customer base within the construction and property development sectors will contribute positively towards BHB’s Trading and Manufacturing Division.
UAC Berhad is a manufacturer and distributor of fibre cement building and construction products. UAC Steel Systems Sdn Bhd, its wholly-owned subsidiary, manufactures and installs steel roof truss systems for commercial, residential and industrial buildings.
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 & manufacturing and pharmaceutical. As at 31 June 2012, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM4.5 billion. Market capitalisation is currently in excess of RM5 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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