KUALA LUMPUR (Sept 1): Boustead Holdings Bhd has today denied claims that it was attempting to block a proposed privatisation exercise of the company by its major shareholder, the Armed Forces Fund Board (LTAT).

“Boustead would like to state that there is neither any attempt by the company to fend off a privatisation exercise from LTAT, nor is the company in any discussion to conduct a management buyout,” it said in a statement today.

“In the context of the proposed privatisation by LTAT, Boustead has yet to receive any offer from LTAT. If such an offer is conveyed to the company, an official announcement in accordance with Bursa Malaysia’s disclosure requirements will be made accordingly,” it added.

Boustead's statement was issued in response to a news report, quoting sources, that said the conglomerate’s management was attempting to fend off LTAT’s proposal to bring Boustead private.

The proposed offer from LTAT, which holds 59.44% in Boustead, is at an indicative price of 80 sen per share or about RM660 million for shares it does not own in the company. The Securities Commission Malaysia has given LTAT until Oct 27 to firm up its offer and make an announcement.

According to the report, LTAT has not made a firm offer as it is still exploring different proposals to restructure Boustead in order to extract value from the conglomerate.

This includes an offer by one investor group to acquire a 20% stake in Boustead, and another offer from a private equity firm to fund the privatisation and the ensuing restructuring.

Boustead, which controls four listed companies — Affin Bank Bhd, Boustead Plantations Bhd, Boustead Heavy Industries Corp Bhd and Pharmaniaga Bhd — had net assets of RM1.76 per share as at end-June, which is more than double LTAT’s indicative offer.

The loss-making company has just embarked on a three-year transformation programme dubbed EDGE20, which comprises 20 transformation initiatives, to emerge as a high-performing and sustainable organisation.

The counter closed at 69 sen, down 1 sen or 1.43%, giving Boustead a market capitalisation of RM1.41 billion.

Edited by Tan Choe Choe