BHIC to submit Boustead’s 48 sen cash offer to minorities

PETALING JAYA: Boustead Holdings Bhd will be going ahead with its privatisation of Boustead Heavy Industries Corp Bhd (BHIC), with the latter’s board anticipated to table a proposed selective capital reduction and repayment exercise at 48 sen per share for shareholders' approval.

In a filing with Bursa Malaysia, BHIC said its non-interested directors have resolved to present the proposal at an EGM and specialised class meetings for preference shareholders.

The company said DWA Advisory Sdn Bhd has been appointed as the independent adviser to assess the fairness and reasonableness of the offer.

The privatisation will result in a payout of RM149.59mil to minority shareholders, encompassing 155.86 million BHIC shares held by the public, and 155.8 million preference shares — comprising 23.63 million redeemable convertible preference shares (RCPS A) and 132.17 million Islamic redeemable convertible preference shares (RCPS-i A).

Boustead Holdings and its parent, Lembaga Tabung Angkatan Tentera or LTAT, collectively control 74.7% of BHIC's ordinary shares.

Upon completion of the privatisation exercise, Boustead Holdings will cancel the entitled shares and RCPS.

It will then have 408.42 million BHIC shares and 84.66 million RCPS B, making BHIC a wholly-owned subsidiary.