IN 2019, Lembaga Tabung Angkatan Tentera (LTAT) set a goal to reduce its heavy dependence on dividend income from the listed Boustead group of companies as part of its plan to rebalance its investment portfolio. Two years on, it seems no closer to realising that goal after it aborted its plan to take Boustead Holdings Bhd private last week.
The proposed privatisation was mooted by LTAT last May in what was seen as an important step for the armed forces pension fund to support the potential restructuring of the loss-making diversified conglomerate’s businesses away from the scrutiny of public shareholders and regulators. The proposal is now entirely off the table and attention has now shifted to Boustead to turn itself around.
AFTER incurring three consecutive years of net losses, Boustead Holdings Bhd
, which is majority owned by the Armed Forces Fund Board (LTAT), still continues to find itself in turbulent waters.
The company, which has business interests in various sectors of the economy but is struggling to return to profitability in the near term, also builds combat ships for the country’s navy and is 59.4% owned by the LTAT.
In an interview with StarBizWeek, group managing director Datuk Seri Mohammed Shazalli Ramly, (pic) who had taken over the helm in December 2020, says the outlook will remain challenging for the time being.
KUALA LUMPUR (Feb 2): Lembaga Tabung Angkatan Tentera (LTAT) has decided not to pursue the privatisation of Boustead Holdings Bhd at this juncture, after taking into consideration the current challenging economic environment arising from the Covid-19 pandemic and the reimplementation of Movement Control Order.
In view of this development, it was jointly agreed by both parties for the management of Boustead to focus on its newly crafted Reinventing Boustead strategy to rejuvenate the group, said diversified group Boustead in a statement today.
“This strategy will involve value creation within the group’s existing core businesses, creatively changing business models, rationalising a few non-strategic assets, as well as venturing into the digital services and technology sector,” Boustead noted.
KUALA LUMPUR (Feb 2): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Wednesday, Feb 3) include: Boustead Holdings Bhd, Pharmaniaga Bhd, Bursa Malaysia Bhd, RHB Bank Bhd, Greatech Technology Bhd, Genting Malaysia Bhd (GenM), S P Setia Bhd, Lii Hen Industries Bhd, Bintai Kinden Corp Bhd, TCS Group Holdings Bhd, Willowglen MSC Bhd and Westports Holdings Bhd.
Lembaga Tabung Angkatan Tentera (LTAT) has decided not to pursue the privatisation of
Boustead Holdings Bhd at this juncture, after taking into consideration the current challenging economic environment arising from the Covid-19 pandemic and the reimplementation of Movement Control Order.