KUALA LUMPUR (July 27): Boustead Holdings Bhd (BHB) said it had today received a notice from Lembaga Tabung Angkatan Tentera (LTAT) that the latter had been granted more time to to announce its firm intention in relation to taking BHB private.

The Securities Commission Malaysia had, vide its letter dated July 24, 2020, approved LTAT’s extension application until Oct 27, 2020, BHB said in a bourse filing today.

Save for the above, BHB said, there has been no material development in respect of the proposal.

“The company wishes to highlight that the press notice issued by LTAT does not amount to a firm intention by LTAT to undertake the proposal. Accordingly, there can be no certainty that LTAT will proceed with the proposal,” it added.

It also advised shareholders to exercise caution and seek appropriate independent advice when dealing in the BHB shares, since there is no certainty that LTAT will proceed with the proposal.

Last week, BHB saw erratic movements in its share price, with its stock soaring more than 50% in about four trading days, before it experienced deep selling.

The stock reached an intra-week high of 82.5 sen on Thursday (July 23). Then, on the same day, BHB shares sank 13% or 10.5 sen to close at 70 sen.

Today, BHB shares closed unchanged at 68 sen apiece, giving it a total market capitalisation of RM1.37 billion.

It was previously reported that LTAT is considering taking its 59%-owned BHB private, at an indicative price of 80 sen per share, and embarking on a major debt restructuring which will include the sale of its non-core assets, in a move to improve its long term financial position.

BHB holds 20.73% stake in Affin Bank, 57.42% stake in Boustead Plantations Bhd, 65% stake in Boustead Heavy Industries Corp Bhd and 56.09% stake in Pharmaniaga Bhd.

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