KUALA LUMPUR Feb 17 Al-Hadharah Boustead REIT
, one of four Islamic real estate investment trusts on
Malaysia's stock exchange, will be delisted on Wednesday ahead
of a bigger initial public offer of shares planned by its main
Al-Hadharah, which manages 12 plantation assets worth 1.2
billion ringgit ($363 million), will delist after its units were
thinly traded and the company found it difficult to maintain
Boustead Holdings offered to pay 2.10 ringgit per unit or
$190 million for the 46.4 percent it did not own in Al-Hadharah.
Al-Hadharah had previously said mature plantation assets
needed for growth were scarce and expensive, while its policy of
distributing 90 percent of earnings as dividends meant that
funds for investment were limited.
The delisting was a "good opportunity" for unit holders to
exit at an attractive price, considering the limited growth
prospects of the REIT, Hong Leong Investment Bank said in a
circular last November.
Al-Hadharah was merged with Boustead Plantations. The
company now manages 40 oil palm estates and 10 mills across
Malaysia; Boustead Plantations' IPO is expected in the second
quarter of this year.
Axis Real Estate Investment Trust, Al-Aqar
Healthcare REIT and KLCC Real Estate Investment Trust
will be the remaining Islamic REITs on the local
($1 = 3.3052 Malaysian ringgit)
(Reporting by Al-Zaquan Amer Hamzah; Editing by Andrew Torchia)