KLK, Boustead’s RM1.15 billion stake deal falls through in Malaysia

MALAYSIAN palm oil producer Kuala Lumpur Kepong on Wednesday said a RM1.15 billion (S$333 million) deal for it to acquire a 33 per cent stake in smaller rival Boustead Plantations has been terminated.

KLK, as the company is known, said a condition to finalise the share acquisition will not be satisfied by the cut-off date of Oct 6, but did not give further details.

Boustead will return a deposit sum of RM229.2 million to KLK as a result of the termination.

KLK had in August disclosed plans to take over Boustead along with other top shareholders, in due course, in a deal worth RM3.47 billion.

Earlier in the day, Bloomberg reported citing its sources that KLK was in discussions with Malaysia’s military pension fund – Lembaga Tabung Angkatan Tentera, which holds majority interest in Boustead to rework the deal. REUTERS