Malaysia’s Boustead Plantations’ deal with Kuala Lumpur Kepong awaits final decision

MALAYSIAN palm oil producer Boustead Plantations said on Tuesday (Oct 3) that a proposed collaboration with bigger rival Kuala Lumpur Kepong was pending a final decision between the two companies.

A media report earlier in the day said that a RM1.15 billion (S$334.7 million) deal for a 33 per cent stake in Boustead by Kuala Lumpur Kepong had fallen through.

The cut-off date for finalising the deal is Oct 6, according to Boustead.

Boustead’s shares hit their lowest in nearly two months in the previous session, losing 13 per cent, with the company halting trading in its shares on Tuesday.

The deadline for deal finalisation has already been extended twice, according to the report.

Kuala Lumpur Kepong said in August it plans to buy a 33 per cent stake in Boustead to take over the smaller rival along with other top shareholders, in due course, in a deal worth RM3.47 billion. REUTERS