Kuala Lumpur Kepong : LTAT, BHB and KLK Sign Strategic Collaboration Agreement

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LTAT, BHB AND KLK

SIGN STRATEGIC COLLABORATION AGREEMENT

KUALA LUMPUR, 24 AUGUST 2023 - Lembaga Tabung Angkatan Tentera ("LTAT"), Boustead Holdings Berhad ("BHB" or "the Group"), and Kuala Lumpur Kepong Berhad ("KLK") are pleased to announce the signing of a tripartite Strategic Collaboration Agreement ("SCA") in relation to Boustead Plantations Berhad ("BPlant"). The SCA provides a framework for value creation for LTAT, BHB and KLK.

Under the SCA, LTAT, BHB and KLK ("Joint Offerors") will undertake a mandatory take -over offer ("Offer") to acquire all the remaining BPlant shares not already owned by the Joint Offerors at cash offer price of RM 1.55 per BPlant share.

The Offer is triggered as a direct outcome of the acquisition by KLK of a total of 739,199,966 ordinary shares in BPlant representing 33% and 1 share of the total issued shares of BPlant from BHB, for a cash consideration of RM 1.15 Billion or RM 1.55 per ordinary share in BPlant ("Proposed Acquisition"). The offer price values BPlant at RM 3.47 Billion.

Currently, BHB holds a 57.42% stake in BPlant while LTAT holds a 10.59% stake in the plantation company.

The objective of the strategic collaboration with KLK, a leading player in the palm oil industry, is to enhance the long-term operational efficiencies and crude palm oil yields of BPlant's plantations for the mutual benefit of the parties. This collaboration is expected to contribute positively to BPlant's financial position over the long term.

As part of the value creation exercise under the SCA, BHB and LTAT are granted the first right of refusal to deal with two plantation estates, namely Balau and Bukit Mertajam (Mayfield Division) estates, with a total acreage of approximately 1,800 acres, for the purpose of development of the land hence providing added value to BHB.

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LTAT Chief Executive Dato' Nazim Rahman said, "This timely strategic collaboration marks the beginning of the Reset strategy for Boustead Holdings Berhad, which will result in significant value enhancement to the Group. LTAT remains steadfast at realising its MAMPAN25 Strategic Plan 2023-2025 through a robust portfolio rebalancing exercise with a clear mission of advancing the socio-economicwell-being of the Armed Forces and Veterans. We firmly believe that this strategic collaboration with its synergies will unlock greater value for all stakeholders within the business value chain. We are confident that this will put both BHB and LTAT on a firm footing towards a sustainable future."

KLK Chief Executive Officer Tan Sri Dato' Seri Lee Oi Hian said, "This strategic collaboration will not only strengthen the existing co-operation between KLK and BHB, but it provides a major boost to the long-term growth strategy of KLK Group's plantation business. We are humbled to be entrusted as a partner to co-operate and deliver improvements to BPlant's estates, in synergy with our own estates. We are optimistic that this corporate exercise will bring positive benefit for Malaysia's palm oil industry as a whole,"

The collaboration will strengthen the existing partnership between these prominent entities and is expected to contribute positively to the Malaysian palm oil industry.

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About Lembaga Tabung Angkatan Tentera

Established in August 1972 under the Armed Forces Fund Act (also known as Act 101), the Lembaga Tabung Angkatan Tentera (LTAT) is a statutory body which manages the pension fund for officers and members of other ranks of the Malaysian Armed Forces (ATM) and the veterans. The latest amendment to the Act was made on 1 November 2022.

At present, there are a total of 116,456 ATM members, with 110,792 active members. Under the LTAT scheme, contributors are required to contribute 10% of their monthly salary; with the Government as their employer contributing 15% to LTAT.

As of July 2023, LTAT had Assets Under management of close to RM10.6 billion. LTAT declared a 5% dividend in 2022 after paying 4.1% in 2021, 3.5% in 2020, 2.5% in 2019 and 2% in 2018.

About Boustead Holdings Berhad

Boustead Holdings Berhad ("Boustead") is one of Malaysia's oldest conglomerates with Lembaga Tabung Angkatan Tentera ("LTAT") as its majority shareholder. The diversified Group comprises more than 90 subsidiaries, associate companies and joint ventures, and has substantial interests in various sectors of the Malaysian economy.

Its operations are focused in five key areas namely plantation, heavy industries, property & industrial, trading, finance & investment, and pharmaceutical.

Since its inception as a modest trading entity more than 190 years ago, the Boustead Group has grown by leaps and bounds. As at 31 March 2023, Boustead Holdings Berhad's paid-up capital was RM2.7 billion while its shareholders' funds stood at RM3.2 billion. Market capitalisation is in the region of RM1.7 billion. For more information on Boustead, log on to www.boustead.com.my.

About Kuala Lumpur Kepong Berhad

Kuala Lumpur Kepong Berhad (KLK) started as a plantation company more than 100 years ago and today, the development of oil palm remains the Group's core business. As of September 2022, KLK has about 300,000 hectares of planted area. Our landbank is spread across Malaysia (Peninsular and Sabah), Indonesia (Belitung Island, Sumatra, as well as Central and East Kalimantan) and Liberia.

Since the 1990s, KLK has diversified into resource-based manufacturing (oleochemical, derivatives and specialty chemicals) and vertically integrated its upstream and downstream businesses. The Group has since expanded its manufacturing operations resulting in internationally-scaled oleochemicals operations in China, Switzerland, Germany, The Netherlands, Belgium and Italy.

The Group started capitalising on the strategic location of its land bank in Peninsular Malaysia by branching into property development in 1990. Our first foray into property development was Sierramas in Sungai Buloh, a joint venture with Tan & Tan Development Bhd. It is presently focused on Bandar Seri Coalfields, a 1,001-acre township in Sungai Buloh, and Caledonia in Ijok.