Boustead Unlocks Value via Plantation IPO
Unitholders and Shareholders to Benefit
KUALA LUMPUR, December 30, 2013 – Boustead Plantations Berhad (BPB), a wholly-owned subsidiary of Boustead Holdings Berhad (BHB), intends to list its shares on the Main Market of Bursa Securities. Upon listing, the enlarged and paid-up capital of BPB will be 1.6 billion shares of RM0.50 each.
Upon the completion of the privatisation of Al-Hadharah Boustead REIT (Boustead REIT) by BPB, the BPB group of companies (BPB Group) will own, co-own or lease a total of 40 oil palm plantation estates in Malaysia as well as own and operate 10 palm oil mills.
As part of the initial public offering (IPO), unitholders of Boustead REIT and shareholders of BHB will benefit from this corporate exercise where they will be allocated IPO shares for application.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “Our philosophy has always been to keep in mind our existing unitholders and shareholders, many of whom have been with us for quite some time. On this premise, we have made a point to structure the offering in such a way that unitholders and shareholders of Boustead REIT and BHB respectively will be given the opportunity to participate in this IPO without having to ballot.”
“We are confident that the listing of BPB will expand the Group’s prospects in the plantation sector, what more given our vast experience and strong track record in managing plantation assets.”
The proposed IPO consists of up to 656,000,000 ordinary shares in BPB. This comprises a proposed offer for sale of up to 76,000,000 existing BPB shares to be offered by BHB and a public issue of 580,000,000 new BPB shares to be issued by BPB to retail and institutional investors.
The retail offering consists of up to 492,429,500 IPO shares. Of these IPO shares, 206,835,500 issue shares will be reserved for applications by entitled shareholders of BHB, on the basis of a BPB share for every five BHB shares held. Meanwhile, 174,594,000 BPB shares will be reserved for applications by entitled unitholders of Boustead REIT on the basis of three BPB shares for every five Boustead REIT units held.
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 Group, BHB as well as persons who have contributed to the success of the BPB Group. 64,000,000 BPB shares will also be made available for application by the Malaysian public via balloting.
In addition, the institutional offering will see up to 163,570,500 IPO 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 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 RM5.6 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
communications sdn bhd
For more details, please contact:
Natalia Ghani at 012 231 4782 or Yasmin Kadir at 017 237 9048 Or 03 7958 8348
or email: email@example.com