Malaysian palm oil firm Kuala Lumpur Kepong Berhad said it plans to buy a 33% stake in smaller rival Boustead Plantations for 1.15 billion ringgit ($247.84 million), and eventually make a takeover offer along with other top shareholders.
The stake purchase and the takeover proposal represent an offer price of 1.55 ringgit per share, a 13% premium to Boustead Plantations’ closing price on Wednesday.
KLK, as the company is known, will buy the 33% stake from conglomerate Boustead Holdings, it said in a statement.
Upon completion of the purchase, KLK, Boustead Holdings and Malaysia’s military pension fund Lembaga Tabung Angkatan Tentera – the top three shareholders of Boustead Plantations – will make a takeover offer for Boustead Plantations.
Shares of Boustead Plantations, which has a market capitalisation of 3 billion ringgit ($646.27 million), were suspended from trading on Thursday pending an announcement.
Source: Reuters.com