KLK has proposed to acquire 33% stake in Boustead Plantation from BHB and LTAT for a cash consideration of RM1.1 billion or RM1.55 per BPlant Share.
Upon completion of the Proposed Acquisition, KLK’s shareholding in BPlant will increase from nil to 33% and 1 share, while BHB and LTAT will collectively retain their remaining equity interest of approximately 35.0% in BPlant. On the unconditional date of the Proposed Acquisition, both BHB and LTAT shall be joint offerors with KLK, and the Joint Offerors will be obliged to extend a mandatory take-over offer to acquire all the remaining BPlant Shares not already owned by the Joint Offerors for a cash offer price of RM1.55 per BPlant Share.
For information purposes, KLK and BHB have been equal partners since 1986 through Applied Agricultural Resources Sdn Bhd, a joint venture company principally involved in agronomic advisory and research services as well as the commercial production of oil palm seeds and planting materials. The working relationship established with BHB through the said venture will facilitate mutual cooperation under the Proposed Strategic Collaboration.
KLK sees the proposed strategic collaboration to strengthen the existing co-operation between KLK and BHB and further provide the KLK Group the long-term growth strategy for its plantation business.
