SC Approves Listing of Boustead Plantations Berhad
KUALA LUMPUR, March 24, 2014 – Boustead Holdings Berhad (BHB) today announced that it has received approval from the Securities Commission for the proposed listing of its wholly-owned subsidiary, Boustead Plantations Berhad (BPB), on the Main Board of Bursa Malaysia Securities Berhad.
The proposed listing will see the Group consolidating its plantation assets under BPB, allowing for greater economies of scale and streamlined operations with a view to optimising performance. Upon listing, the total enlarged and paid-up share capital of BPB will be RM800 million comprising 1.6 billion shares.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “We are glad to have received approval for this significant corporate exercise. In line with our long-term strategy to unlock the value of our investments, this listing will allow us to strengthen our prospects in the plantation sector.”
“Furthermore, existing shareholders and potential new shareholders will have the opportunity to take part in a pure plantation company that has a track record of delivering sustained earnings on a consistent basis. We are also offering existing BHB shareholders and the previous unitholders of Al-Hadharah Boustead REIT (Boustead REIT) IPO shares for application, enabling them to participate without having to ballot.”
The proposed listing comprises an offer for sale of up to 76,000,000 offer shares and a public issue of 580,000,000 issue shares to be issued to retail and institutional investors.
The retail offering consists of up to 492,429,500 IPO shares. Of these shares, 206,835,500 issue shares will be reserved for applications by entitled shareholders of BHB. Those who apply for at least 100 issue shares will be guaranteed an allocation of 100 issue shares. Any remaining issue shares will be allocated to entitled BHB shareholders who apply in excess of 100 issue shares, on a pro-rata basis according to their respective shareholdings in BHB as per the entitlement date to be announced later. In addition, 174,594,000 issue shares will be reserved for applications by entitled unitholders of Boustead REIT as of 30 December 2013, with allocation of shares to be made on the same basis as the allocation for BHB shareholders.
At the same time, as part of the retail offering, 47,000,000 offer shares will be set aside for eligible directors and employees of BPB and BHB, as well as persons who have contributed to the success of BPB. 64,000,000 BPB shares will also be made available for application by the Malaysian public via balloting.
Meanwhile, the institutional offering will see up to 163,570,500 IPO shares comprising up to 29,000,000 offer shares and up to 134,570,500 issue shares, offered to Bumiputera investors approved by the Ministry of International Trade and Industry as well as other Malaysian institutions and selected investors.
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 31 December 2013, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM5.2 billion. Market capitalisation is currently in excess of RM5.5 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 Plantations Berhad
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For more details, please contact:
Yasmin Kadir at 017 237 9048 or Michelle Vincent at 012 389 9289
Or 03 7958 8348
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