KUALA LUMPUR , June 26, 2008 – Boustead Holdings Berhad (BHB) is on course with its plans to strengthen its earnings potential with the voluntary take-over of Boustead Properties Berhad (Boustead Properties). At its Extraordinary General Meeting today, BHB will seek the approval of its shareholders to take up the voluntary offer for the remaining 35% of Boustead Properties, bringing the exercise one step closer to completion.
AmInvestment Bank Berhad, as the independent advisor to Boustead Properties shareholders have recommended that the said shareholders accept this very attractive offer based on various considerations, namely the fact the Boustead Properties is considered an illiquid stock. In addition, the premium of 31% above the company’s five-day weighted average market price of RM4.20 which is up to and including 13 May 2008 is indeed a highly attractive offer and based on the current market landscape Boustead Properties shareholders could not ask for a more attractive premium.
As of 5.00pm, 25 June 2008, BHB controls 86% of Boustead Properties. Hence, it only has a remaining 14% more to acquire. The remaining Boustead Properties shareholders who have yet to accept this attractive offer have been given an extension until 10 July 2008 and BHB is confident these shareholders will indeed seize this viable opportunity.
YBhg Tan Sri Dato’ Lodin Wok Kamaruddin, Group Managing Director, Boustead Holdings Berhad at the Group’s Extraordinary General Meeting said, “We are heartened by the approval we have received from our shareholders and positive response from our stakeholders. With the take-over plans of Boustead Properties firmly in place, we are confident we will grow organically and at the same time further strengthen our business. This will be complemented by the synergies in terms of consolidation of assets within the larger BHB Group.”
“Though the Malaysian economy is facing considerable domestic as well as external headwinds, we are very confident the property sector will remain a cornerstone of our economy and equally important, to the Boustead Group’s future earnings. We are all the more bullish on this sentiment given the fact that we have a strong pole position in the property sector particularly in property development and property investment,” he continued.
Boustead Properties is primarily involved in property development, property investment, hotels and plantations. Its signature property developments are Mutiara Damansara, Selangor and Mutiara Rini, Johor. In addition, it is the developer and owner of one of Malaysia’s leading lifestyle shopping malls, the Curve.
“With Boustead Properties’ established track record and competitive strengths, we are positive that this exercise will enable the BHB Group to streamline its efforts to improve and drive the Group’s growth by strengthening our value propositions and steadfastly working towards achieving our long term strategic goals,” he concluded.
Issued on behalf of: Boustead Holdings Berhad—– By: acorn communications sdn bhd
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