Malaysia's Boustead makes plantation REIT private, plans IPO

By IVCPOST Staff Reporter

Jul 16, 2013 06:21 AM EDT

Malaysian company Boustead Holdings Bhd stated that it would be making private its US$190-million plantation REIT. In addition, it planned to merge its REIT with its plantations unit. The new company would then be listed in the stock market. In this way, the conglomerate hoped to achieve economies of scale during a time of falling crude oil prices.

Boustead owned the majority shares in Al-Hadharah Boustead REIT. The stake it doesn't own, equivalent to 46.4%, will be purchased at MYR2.10 per share. The price was a 12.3% premium to its Thursday closing price. The offer price was also 16.7% higher than the net asset value of the REIT at MYR1.80 per share. The payment will be in cash plus special dividend. Because of this planned merger, Al-Hadharah Boustead asked to stop trading Friday. However, the timing of the initial public offering and the amount to be raised were not disclosed.

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