Boustead Holdings offers RM0.48 per share to privatise BHIC

PETALING JAYA: Boustead Heavy Industries Corp Bhd (BHIC), a 72.38%-owned subsidiary of Boustead Holdings Bhd, has received a privatisation proposal offering a cash repayment of RM0.48 per share, valuing the selective capital reduction and repayment exercise at about RM149.6mil.

In a filing with Bursa Malaysia, BHIC said Boustead Holdings intends to privatise the company through a selective capital reduction involving all ordinary shares not owned by Boustead Holdings, as well as a capital reduction for redeemable convertible preference shares (RCPS) Class A and Islamic RCPS Class A.

Under the proposal, shareholders other than Boustead Holdings and eligible RCPS holders will receive RM0.48 in cash for each BHIC share, RCPS A and RCPS-i A held as at an entitlement date to be determined later.

All such shares and RCPS held by entitled holders will be cancelled pursuant to the proposal.

As at Feb 6, 2026, entitled holders collectively held 155.86 million BHIC shares, 23.63 million RCPS A and 132.16 million RCPS-i A.

Upon completion of the exercise, Boustead Holdings will own the remaining 408.42 million BHIC shares and 84.66 million RCPS Class B, resulting in BHIC becoming a wholly owned subsidiary of Boustead Holdings.

Boustead Holdings does not intend to maintain the listing status of BHIC on the Main Market of Bursa Malaysia.

Boustead Holdings said the SCR offer price of RM0.48 represents a premium ranging from 54.84% to 96.08% over the closing price, 5-day, 1-month, 3-month, 6-month and 1-year volume-weighted average prices of BHIC Shares

“Accordingly, the proposal provides entitled shareholders with an opportunity to realise their investments in BHIC at a premium over the market price of BHIC Shares, which may otherwise be unavailable as the current and historical trading market prices of BHIC Shares for the past 1 year is lower than the SCR offer price,” it said.

The proposal will be funded through advances from Boustead Holdings to BHIC. These advances will be financed by Boustead Holdings via bank borrowings and/or internally generated funds.

BHIC said its board, excluding directors deemed interested in the proposal, will deliberate on the proposal before deciding on the next course of action.

Boustead Holdings has set an acceptance deadline of 5.00 pm on March 3, 2026, or such later date as may be extended in writing, failing which the proposal will lapse.