Boustead announced corporate exercise to privatise BSDREIT via proposed offer to other share holders at RM 1.90 and special dividend of RM 0.20 per share.
The price offered is uninteresting and defeated its purpose for REIT listing at the first place. If shortage of plantation land will affect yield. BSDREIT should exercise on more acquisition rather than privatisation. If REIT’s rule need to pay out more dividend that hinder their new plan. Then I am not sure why are available methods like private placement and right issues that can raise more cash. Worst, they can co-operate with property developer to transform partial of the land use to maximize the land value via township development.
Of course this is our view as minority share holder but we think this is a classic example of good resources but poor management.