KUALA LUMPUR , May 15, 2008 – Boustead Holdings Berhad (BHB) today announced its proposed take-over offer for Boustead Properties Berhad (Boustead Properties). With this significant corporate exercise, minority shareholders of Boustead Properties can expect to gain a handsome premium for their equity due to the offer put forward by BHB.
Under this proposed voluntary take-over (VTO), BHB which already controls 65% of the company will offer Boustead Properties shareholders, both retail and institutional a 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. On this basis, the offer price has been set at RM5.50 per Boustead Properties share. This consideration is also at a premium on the audited net assets per share as at 31 December 2007 of RM5.14.
As at 15 May 2008, Lembaga Tabung Angkatan Tentera (LTAT) holds 8.6% in Boustead Properties and is deemed as a person acting in concert with BHB by virtue of LTAT’s 57.5% stake in BHB. LTAT has consented to this VTO and provided its irrevocable undertaking to accept the proposed offer in respect of its shareholding in Boustead Properties.
YBhg Tan Sri Dato’ Lodin Wok Kamaruddin, Group Managing Director, Boustead Holdings Berhad, said “The Boustead Group has been performing successfully over the years and has been fortifying its earnings potential. We have ensured organic growth and when appropriate, as it is in this case, we have undertaken corporate exercises with the sole view of strengthening shareholder value.”
“Once the VTO is successfully completed, the Boustead Group will be further strengthened as the entire earnings contribution from Boustead Properties will be fully realised at BHB level. This will be complemented by the synergies in terms of consolidation of assets within the larger Group.
“Another factor leading to our take-over offer was the fact that trading in Boustead Properties shares have been relatively illiquid on the stock market. It will be more meaningful to consolidate Boustead Properties into BHB particularly given the liquidity levels at the holding company. We trust with this initiative, shareholders can benefit from a potential upside subject to market conditions. We are also providing an avenue for shareholders to have greater access to a larger listed entity with a more diversified earnings base.”
“In order to offer existing shareholders of Boustead Properties a fair advantage, we have made it easy for them to take up the voluntary offer with two options in mind, either via a direct cash consideration or by accepting the share swap into BHB shares, alternatively a combination of both,” 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 mall, the Curve. “At Boustead, we are very focused on talent management given that this is one of the most crucial factors to ensure the Group’s on-going growth plans are achieved without interruption. In tandem with this philosophy, we will maintain the strong talent pool that we have nurtured at Boustead Properties.”
“With the Malaysian market maturing, particularly in the areas of business we are involved in, we must remain focused on anticipating market trends and keeping the competition at bay. The property sector will remain a cornerstone of the Malaysian economy and we are confident any streamlining efforts we put into place will only improve and drive the Group’s long term growth.” Upon the successful completion of the VTO, BHB does not intend to maintain the listing status of Boustead Properties.
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 80 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, finance & investment, property, manufacturing and services, trading and heavy industries. As at 31 December 2007, Boustead Holdings Berhad’s paid-up capital is RM315 million, while its shareholders’ funds stand at RM2.5 billion. Market capitalisation currently is in excess of RM3.3 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.
-ends-
For further information, please call:
Ng Siew Yen at 012 222 2610 or Desiree Ann at 03-7958 8348
Or email to: clientservicing@aconrco.com.my
