PETALING JAYA, 10 February 2026 — Boustead Holdings Berhad (“BHB”) informed the Board of Directors of Boustead Heavy Industries Corporation Berhad (“BHIC”) (“Board”) of its intention to privatise BHIC, a 72.38%-owned subsidiary of BHB via a letter dated today, (“Proposed Letter”) by way of:
- a selective capital reduction and repayment for all ordinary shares in BHIC (“BHIC Shares”) not owned by BHB (“Proposed SCR”); and
- a capital reduction and repayment for the entire Redeemable Convertible Preference Shares Class A (“RCPS A”) and Islamic RCPS Class A (“RCPS-i A”) (“Proposed CRR”),
pursuant to Section 116 of the Companies Act 2016,
The Proposed SCR and Proposed CRR are collectively referred to as the “Proposal”.
Under the Proposal, the following securities will be cancelled:
- 155,861,624 ordinary shares, representing 62% of BHIC’s total issued shares;
- 23,625,548 RCPS A; and
- 132,165,050 RCPS-i A.
Upon completion, entitled shareholders and holders of RCPS A and RCPS-i A will receive RM0.48 in cash for each BHIC Share, RCPS A and RCPS-i A,
as at the entitlement date to be determined and announced by the Board.
The Proposal will be funded through advances from BHB to BHIC. These advances will be financed by BHB via bank borrowings and/or internally generated funds.
BHB has confirmed that it has sufficient financial resources to implement the Proposal and that all entitled shareholders and RCPS A and RCPS-i A holders will be paid in full in cash. Accordingly, the Proposal will not fail by reason of insufficient financial capability.
Further details on the Proposal are attached in the Proposal Letter issued by BHB to the Board. Relevant announcements will be made in due course in accordance with regulatory requirements.
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Boustead Holdings Berhad (“Boustead”) is one of Malaysia’s oldest and most diversified conglomerates, wholly owned by Lembaga Tabung Angkatan Tentera (LTAT). The Group comprises more than 80 subsidiaries, associate companies, and joint ventures, with significant interests across key sectors of the Malaysian economy. Boustead’s core business areas include pharmaceuticals, heavy industries, property and industrial developmentas well as trading, finance and investment.
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.
For more information, please contact the Group Engagement & Communications (GEC) Department at gcom@boustead.com.my or sharinaahmad@boustead.com.my or call 012-310 0394.
