Boustead’s Expansion Plans On Track
KUALA LUMPUR, April 14, 2015 – Boustead Holdings Berhad (BHB) today announced a capital injection for its latest proposed acquisition of 50% of the issued and paid-up ordinary share capital in Irat Properties Sdn Bhd representing 93,333,333 Irat shares, amounting to a total cash consideration of RM199 million.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “With this viable acquisition, we are set to strengthen our earnings potential. We are especially positive on our prospects in the property sector given the fact that this acquisition includes two properties in the heart of Kuala Lumpur, namely the Chulan Tower Office Block and The Royale Chulan Kuala Lumpur Hotel valued at a total of RM508 million. We expect both properties which enjoy strong occupancy rates to complement the prime properties under our stable and bring about further improvement to synergy within the Group.”
In addition to this, the sale and purchase agreement (SPA) for the proposed acquisition of ATES Sdn Bhd by Irat Properties has become unconditional today. The proposed acquisition of Beta Tegap Sdn Bhd by Irat Properties is currently pending the fulfilment of the conditions precedent in the SPA.
The two companies are engaged in the operation of the automated enforcement system (AES) and hence, the proposed acquisition will see Boustead acquiring a stake in the AES, which will be jointly managed by Boustead and Lembaga Tabung Angkatan Tentera (LTAT).
“The strength of the Group is premised on our strong fundamentals and diversified nature. In line with this, we expect our entry into the automated enforcement segment to prove beneficial to the Group in the long term,” concluded YBhg Tan Sri Dato’ Seri Lodin.
The proposed acquisition consists of 60,000,000 new Irat Shares for a cash consideration of RM128 million and an additional 33,333,333 new Irat Shares at the issue price of RM2.13 per Irat Share, for a cash consideration of RM71 million.
The remaining 50% equity interest in Irat is held by existing shareholders, LTAT and Irat Holdings Sdn Bhd.
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 subsidiaries, associate companies and joint ventures, 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 2014, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM5.9 billion. Market capitalisation is currently in excess of RM4.8 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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