On Aug 24, KLK inked a deal with LTAT and BHB to acquire 33% of BPlant, or 739.19 million shares, for RM1.15 billion in cash.
A back-of-the-envelope calculation based on last Friday’s closing price of RM1.46 suggests that KLK could have paid approximately RM1.18 billion for the stake.BPlant is controlled by the Armed Forces Fund Board and its wholly owned subsidiary Boustead Holdings Bhd for a combined 68% share in the plantation company. BHB holds a 57.42% stake while LTAT holds 10.59%.
Under the terms of the agreement, KLK will acquire 739.2 million shares, equivalent to a 33% stake plus one share in BPlant, for a cash payment of RM1.15 billion. BPlant had been queried by the exchange regulator to confirm or deny whether the acquisition had fallen through after a business publication reported that KLK’s acquisition of the 33% stake had been scrapped after two deadline extensions for the cut-off date.
PAS MP for Pendang Awang Solahuddin Hashim described BHB and LTAT’s decision in divesting part of their stakes to KLK as “dangerous.”