Boustead Completes Acquisition of Irat Properties
KUALA LUMPUR, April 28, 2015 – Boustead Holdings Berhad (BHB) today announced the completion of its acquisition of 50% equity in Irat Properties Sdn Bhd through a third subscription consisting of an additional 24,037,559 Irat Shares at an issue price of RM2.13 signifying a cash consideration of RM51 million. .
Further to this, the sale and purchase agreement (SPA) for the acquisition of Beta Tegap Sdn Bhd by Irat Properties has become unconditional today. Both Beta Tegap and ATES Sdn Bhd, the operators of the Automated Enforcement System (AES), are now wholly-owned subsidiaries of Irat Properties.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “We are positive that the completion of this viable acquisition will have a beneficial impact on the Group’s bottom line not only in terms of new business but also in terms of improvement to synergy within the Group.”
In order to facilitate Lembaga Tabung Angkatan Tentera (LTAT) and Boustead’s intention of having joint control in Irat Properties, LTAT is set to enter into a conditional SPA with Irat Holdings Sdn Bhd to acquire the entirety of its 0.43% stake in Irat Properties. Upon completion of this exercise, BHB and LTAT will have joint control in Irat Properties with a 50% stake each.
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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