Both KLK and LTAT the parent company of Boustead Plantation have decided to terminate the collaboration deal after failing to come to an agreement.
On behalf of KLK, RHB Investment Bank announced that the company has been informed that the condition precedent under the SCA will not be satisfied by the Cut-Off Date of 6 October 2023 and accordingly, the parties to the SCA have agreed not to proceed with the proposed strategic collaboration
To this effect, the SCA is terminated with immediate effect on 4 October 2023; and as a result of the termination, Boustead Holdings Berhad is to return the Deposit (equivalent to the sum of RM229,151,989.46) to KLK within 14 business days from 4 October 2023, or such other later date as may be agreed between the parties.
KLK said the termination is not expected to have any material effect on the earnings.
The high-profile deal came about when KLK 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.
