KUALA LUMPUR – The Armed Forces Fund Board (LTAT) has decided not to pursue the proposed privatisation of Boustead Holdings Bhd (BHB), in which it holds a 59.42% stake.
LTAT notified the board of BHB that the decision was reached after considering the various risk factors in implementing the proposal, particularly the current economic challenges from the Covid-19 pandemic.
“In view of this development, it was jointly agreed between both parties for the management of BHB to focus on its newly crafted ‘Reinventing Boustead’ strategy to rejuvenate the group,” the conglomerate said in a statement to Bursa Malaysia today.
BHB said the strategy would involve value creation within the group’s existing core businesses, creatively changing business models, rationalising a few non-strategic assets as well as venturing into the digital services and technology sector.
Chairman Datuk Seri Mohamed Khaled Nordin said LTAT and Boustead had mutually decided against the proposal for now, after a thorough study and discussions with relevant stakeholders.
“We welcome this decision as the management of Boustead will now have an unwavering focus to capitalise on emerging opportunities and accelerate value creation.
“We are clear on the path we need to take to improve our business prospects and maximise the returns to our main stakeholders – the military contributors of LTAT,” he said.
On the newly crafted ‘Reinventing Boustead’ strategy, group managing director Datuk Seri Mohammed Shazalli Ramly said over the next few weeks, the company would start unveiling its initiatives one by one to accelerate the reinvention of Boustead and ultimately meet the expectations of its shareholders.
“The need to reinvent Boustead is needed more than ever. Through enhanced creativity and continuous innovation of business models, anchored in the foundation of uncompromising governance and integrity, we commit to transform our brick-and-mortar businesses to become more robust, digitised and sustainable,” he added.
Meanwhile, LTAT said in its letter that as BHB’s controlling shareholder, it was supportive of BHB’s plan to actively pursue and successfully execute its turnaround plans and growth strategies.
“LTAT shall continue to review its options in line with LTAT’s objective to preserve and enhance the value of the assets under its portfolio and to improve the long-term return to our contributors,” it added. – Bernama, February 2, 2021
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