(Bloomberg) -- Kuala Lumpur Kepong Bhd., Malaysia’s third-largest listed palm oil planter, said a decision on its proposed 1.15 billion ringgit ($243 million) deal to raise its stake in Boustead Plantations Bhd. has not been finalized.
The proposed acquisition is still “pending a final decision between transacting parties,” and the cut-off date to fulfill conditions of the agreement is on Oct. 6, both companies said in separate filings to the local bourse.
The announcement came after trading in KLK and Boustead Plantations’ shares were halted Tuesday, amid a local news report that the deal had fallen through. Boustead Plantations tumbled as much as 20% on Monday, prompting the exchange to suspend trading of the stock mid-day.
KLK entered into an agreement with Malaysia’s Armed Forces Pension Fund (LTAT) and Boustead Holdings Bhd. in August to buy a 33% stake in Boustead Plantations. KLK would then make a mandatory general offer for the remaining minority shares, which could give it a controlling stake in the palm oil firm.
Read: Malaysia’s KLK to Buy 33% of Boustead Palm Unit for $248 Million
The collapse of the deal could result in “a writedown of at least 12.6 million ringgit” for KLK, based on Boustead Plantations’s pre-suspension price of 1.27 ringgit, according to Bloomberg Intelligence analyst Alvin Tai.
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