Acquisition of the 33% stake will cost KLK RM1.15 billion, valuing Boustead Plantations at RM3.47 billion.
Boustead Plantations has 42 operating oil palm plantation estates, including 16 estates in Peninsular Malaysia and 26 in Sabah and Sarawak.
At present, BHB holds a 57.42% stake in BPlant while LTAT holds a 10.59% stake, for a combined 68% share in the plantation company. “This collaboration is expected to contribute positively to BPlant’s financial position over the long term,” the statement said. “We firmly believe this strategic collaboration with its synergies will unlock greater value for all stakeholders within the business value chain. We are confident this will put both BHB and LTAT on a firm footing towards a sustainable future,” he added in the statement.KLK CEO Lee Oi Hian said the collaboration will not only strengthen the existing co-operation between KLK and BHB, but it provides a major boost to the long-term growth strategy of KLK Group’s plantation business.
The stake sale comes on the heels of the privatisation of BHB by LTAT two months ago. BPlant’s share price has rebounded strongly from a low of 64 sen on June 8. It has more than doubled since to RM1.37 yesterday, valuing the group at RM3.07 billion. Trading of its shares were suspended from this morning.
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