Boustead offers RM5.50 a share for property unit

LODIN: We are also providing an avenue for shareholders to have greater access to a larger listed entity with a more diversified earning base

CONGLOMERATE Boustead Holdings Bhd is offering RM5.50 per share under its voluntary takeover (VTO) for Boustead Properties Bhd, which is 31 per cent above the five-day weighted average market price of RM4.20.

Under this corporate exercise, Boustead, which already owns 65 per cent of Boustead Properties, said minority shareholders of the property arm can expect a handsome premium for their equity.

"This consideration is also at a premium on the audited net assets per share as at December 31 2007 of RM5.14 per share," Boustead said in a statement yesterday.

Existing shareholders of Boustead Properties are given options of either cash or a direct share swap into Boustead, or alternatively a combination of both.

As of yesterday, Lembaga Tabung Angkatan Tentera (LTAT) holds a 8.6 per cent in Boustead Properties and is deemed as a person acting in concert with Boustead by virtue of LTAT's 57.5 per cent stake in Boustead.

"LTAT has consented to this VTO and provided its irrevocable undertaking to accept the proposed offer in respect of its shareholding in Boustead Properties," it said.

On completion of the VTO, Boustead does not intent to to maintain the listing status of Boustead Properties.

"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 Boustead's level," said Boustead group managing director Tan Sri Datuk Lodin Wok Kamaruddin.

"This will be completed by the synergies in terms of consolidation of assets within the larger group," he added.

He said since shares of Boustead Properties have been relatively illiquid on the stock market, it was better to consolidate the unit into Boustead, given the liquidity levels at the holding company that will benefit shareholders from a potential upside.

"We are also providing an avenue for shareholders to have greater access to a larger listed entity with a more diversified earnings base," Lodin said.

Boustead Properties is mainly involved in properties development, property investment, hotels and plantations.



Its signature township developments are Mutiara Damansara in Selangor and Mutiara Rini in Johor and it also owns the Curve shopping mall in Petaling Jaya.

By New Straits Times