KUALA LUMPUR: Trading in Boustead Plantations Bhd (BPlant) and Kuala Lumpur Kepong Bhd's securities were halted earlier today pending an announcement, amid news that a RM1.15 billion deal for KLK to buy into BPlant has fallen through.
A report in a financial daily, quoting sources, said that the deal, which was to be sealed by this Friday, has fallen through.
The news comes as the Armed Forces Fund Board LTAT), a party to the deal, faced backlash for what opposition leaders called a move which deviates from the country's agenda of achieving 30 per cent Bumiputera corporate equity target by 2025.
BPlant lost RM370 million of its market capitalisation yesterday after its share price closed at RM1.27 a share.
KLK's share price closed at RM21.48 on Monday.
To recap, KLK announced its plan to buy a 33 per cent ownership stake in BPlant, along with one share, from Boustead Holdings Bhd (BHB) and the Armed Forces Fund Board (LTAT) for RM1.15 billion, which equals RM1.55 for each BPlant share.
KLK, LTAT and BHB agreed to extend the cut off date for the deal to October 6, 2023. Once sealed, the three were to launch a mandatory general offer for the remaining shares in BPlant at RM1.55 a share.
