KUALA LUMPUR (Oct 4): Here is a brief recap of some corporate announcements that made news on Wednesday involving Kuala Lumpur Kepong Bhd, Boustead Plantations Bhd, Boustead Heavy Industries Corp Bhd, Boustead Holdings Bhd, KIP Real Estate Investment Trust, Hexza Corporation Bhd and YLI Holdings Bhd.

The proposed disposal of a 33% stake in Boustead Plantations Bhd (BPlant) by the Armed Forces Fund Board (LTAT) and Boustead Holdings Bhd to Kuala Lumpur Kepong Bhd (KLK) has fallen through. This confirms the report by The Edge on Tuesday. KLK said it was informed that the condition precedent under the strategic collaboration agreement inked between KLK, Boustead and LTAT “will not be satisfied by the cut-off date of Oct 6, 2023”. “In the circumstances, the parties mutually agree that the SCA shall be terminated with immediate effect on Oct 4, 2023,” it said. “As a result of the termination, Boustead Holdings Bhd shall return the deposit (equivalent to the sum of RM229.15 million) to KLK within 14 business days from Oct 4, 2023, or such other later date as may be agreed between the parties,” KLK added.

Both KLK and BPlant shares will resume trading on Thursday, after two days of suspension on Tuesday and Wednesday. To recap, the deal would have seen LTAT and Boustead dispose of a 33% stake in BPlant for RM1.15 billion or RM1.55 per share. KLK currently holds a direct 3.09% stake in BPlant, following its last acquisition of 6.11 million shares on Sept 29. Under the deal, KLK had planned to extend a mandatory general offer at RM1.55 a share for BPlant in order to raise its shareholding to 65%, and to subsequently delist the company. LTAT and Boustead would have held the remaining 35% upon completion of the now-defunct exercise.

Boustead Heavy Industries Corp Bhd (BHIC)’s planned disposal of a 20.77% stake in troubled Boustead Naval Shipyard Sdn Bhd (BNS) to the Ministry of Finance (Inc) has been extended by 21 business days as the parties involved require more time to fulfil conditions precedent to the RM1 deal. BHIC said that the agreement for an extension by both parties came after the expiry of the conditional period on Tuesday. The deal was part of the government’s intention to take full control of the RM9.13 billion littoral combat ship (LCS) project that BNS failed to deliver on time. According to BHIC’s past disclosures, the divestment is conditional upon fulfilling conditions precedent within 30 business days, or a further period of 21 business days or such longer period as the parties may agree. Of the remaining equity interest in BNS, Boustead Holdings Bhd holds a direct stake of 68.85%, while LTAT owns 10.38%. LTAT took Boustead Holdings private in June this year.

Unitholders of KIP Real Estate Investment Trust (KIP REIT) on Wednesday voted in favour of the REIT’s proposal to acquire KIPMall Kota Warisan in Sepang for RM80 million. KIPMall Kota Warisan houses a one-and-a-half-storey retail centre, with a net lettable area of approximately 17,300 sq m on a freehold land in Dengkil, Sepang in Selangor. Consequently, the resolution for the proposed private placement of up to 12.27 million new units in KIP REIT to raise RM10 million, partially fund the acquisition.

Hexza Corporation Bhd has disposed of 18,000 shares in US multinational technology company NVIDIA Corp for a total gross cash sum of US$7.90 million (RM37.07 million). The chemical-based manufacturer company said it invested in NVIDIA with the intention of deriving dividend income and for potential capital gains. The proceeds from the disposal will be used for working capital and/or to reinvest in other quoted shares. Hexza disposed of these quoted securities to lower the company’s risk of exposure to a single high value counter, after taking into consideration the overall market conditions of NVIDIA shares.”

YLI Holdings Bhd’s subsidiary, Laksana Wibawa Sdn Bhd, has accepted and received RM97.84 million in compensation for its land in Hulu Serendah, Selangor that was compulsorily acquired for a rail project. It said the RM97.84 million compensation includes compensation for severance damages. The steel manufacturer said the land was acquired by Malaysian Rail Link Sdn Bhd, an agency under the Ministry of Finance (Inc), which has been appointed as the asset and project owner of East Coast Rail Link. Following the disposal, YLI is expected to gain approximately RM62.17 million and it will utilise most of the proceeds for expenses and repayment of its borrowings, as well as redemption of redeemable convertible preference shares.