KUALA LUMPUR, December 21, 2016 As part of its ongoing drive to unlock value, Boustead Plantations Berhad (BPB) has entered into a conditional share sale agreement with Permodalan Darul Ta’zim Sdn Bhd (PDT) for the proposed disposal of BPB’s 76.1% equity interest in Boustead Sedili Sdn Bhd (Boustead Sedili), for a total cash consideration of RM60 million.

The sale consideration was reached on a willing-seller-willing-buyer basis and represents a premium of RM3.5 million or 6.2% over the adjusted effective net asset value of the sale shares held by BPB of approximately RM56.5 million.

Boustead Sedili is the beneficiary of a parcel of oil palm plantation land in Kota Tinggi, Johor, measuring 995.5 hectares. Currently, BPB holds 76.1% interest in Boustead Sedili while PDT holds 23.9%. Upon completion of the exercise, Boustead Sedili will cease to be a subsidiary of BPB.

Once completed, BPB is expected to realise a total estimated net gain on disposal of RM31.5 million, which translates into a gain of approximately 2 sen per BPB share.

YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Vice Chairman, BPB, said, “Boustead Sedili’s overall contribution to BPB is relatively small. Hence, in line with our strategic plans to enhance value, the proposed disposal of equity in Boustead Sedili is a prudent move which will enable the Group to realise our investment at a premium.”

“The proceeds gained from this disposal will be utilised for repayment of bank borrowings. This will allow us to reduce gearing and enhance our liquidity and cash flow to improve the Group’s profitability,” concluded YBhg Tan Sri Dato’ Seri Lodin.

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 Plantations 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.


Issued on behalf of: Boustead Plantations Berhad
By: acorn communications sdn bhd
For further information, please contact:
Yasmin Kadir at 017 237 9048 or Sharon Roberts at 018 917 2764
Or 03 7958 8348 or email: acorncommunications@acornco.com.my