Malaysia’s Boustead Holdings Bhd said it would take its plantations REIT private for US$190 million, merge it with its plantations unit and then list the unit, seeking economies of scale at a time when crude palm oil prices are falling.

The conglomerate, whose businesses range from plantations to financial firms, offered to buy the 46.4 percent it does not own in its Al-Hadharah Boustead REIT for RM2.10 per unit, which combines a cash payment and a special dividend.

The price represents a 12.3 percent premium to its last closing price on Thursday. Al-Hadharah Boustead had asked for a trading halt on Friday pending this announcement.

The offer was also 16.7 percent higher than the REIT’s net asset value of 1.80 ringgit per unit as of March 31.

Crude palm oil exports have fallen as economic growth slows for the world’s two biggest consumers, India and China.

Boustead did not disclose the timing of the IPO or the amount it hopes to raise.

IPOs and secondary share offerings have picked up in Malaysia due to an easing in political uncertainty after a general election in May. UMW Holdings Bhd is planning to list its oil and gas unit by the end of the year in a deal set to raise up to US$1 billion, the country’s largest this year.

- Reuters