Booking.com

Booking.com

Favorite Links

Wednesday, December 21, 2016

Boustead Plantations to gain RM31.5m from Boustead Sedili stake sale


By Surin Murugiah / theedgemarkets.com | December 21, 2016 : 1:56 PM MYT

KUALA LUMPUR (Dec 21): Boustead Plantations Bhd (BPB) is disposing of its 76.1% equity interest in Boustead Sedili Sdn Bhd (Boustead Sedili) for RM60 million as part of its ongoing drive to unlock value.

In a statement today, BPB said it has entered into a conditional share sale agreement with Permodalan Darul Ta'zim Sdn Bhd (PDT) for the proposed disposal.

It said the sale consideration was reached on a willing-seller-willing-buyer basis and represents a premium of RM3.5 million or 6.2% over the adjusted effective net asset value of the sale shares held by BPB of approximately RM56.5 million.

Boustead Sedili is the beneficiary of a parcel of oil palm plantation land in Kota Tinggi, Johor, measuring 995.5 hectares.

Currently, BPB holds 76.1% interest in Boustead Sedili while PDT holds 23.9%. Upon completion of the exercise, Boustead Sedili will cease to be a subsidiary of BPB.

Once completed, BPB is expected to realise a total estimated net gain on disposal of RM31.5 million, which translates into a gain of approximately 2 sen per BPB share.

BPB vice chairman Tan Sri Lodin Wok Kamaruddin said Boustead Sedili's overall contribution to BPB was relatively small.

"Hence, in line with our strategic plans to enhance value, the proposed disposal of equity in Boustead Sedili is a prudent move which will enable the group to realise our investment at a premium.

"The proceeds gained from this disposal will be utilised for repayment of bank borrowings. This will allow us to reduce gearing and enhance our liquidity and cash flow to improve the group's profitability," he said.

At the midday break today, BPB rose four sen or 2.55% to RM1.61, for a market capitalisation of RM2.54 billion.

3 comments:

  1. eToro is the ultimate forex broker for novice and advanced traders.

    ReplyDelete
  2. Forex, also referred to as forex, fx or currency trading, is a decentralized global marketplace in which all of the global's currencies trade. The foreign exchange market is the largest, most liquid market in the international with a median day by day buying and selling extent exceeding $five trillion. All of the international's blended inventory markets don't even come near this. But what does that imply to you? Take a closer have a look at forex buying and selling and you could locate some interesting buying and selling possibilities unavailable with other investments. Let Visit For
    Forex Signals Or
    forex signal provider

    ReplyDelete
  3. The foreign exchange foreign money change is achieved in the forex markets. A foreign exchange trade marketplace or fx trading exists at any region where the forex of a specific country is traded for the currency of some other. The forex marketplace is the largest financial market within the world and is likewise the most liquid as compared to the other monetary markets.
    The forex market incorporates of currency exchange among diverse currency speculators, banks with large setups, numerous relevant banks, governments of numerous international locations, large multinational agencies, and various other monetary establishments and markets. The global foreign exchange markets are anticipated to have an average alternate of 4 trillion usd a day.
    accurate forex signals free
    Forex signals

    ReplyDelete