KUALA LUMPUR: Lembaga Tabung Angkatan Tentera (LTAT), the controlling shareholder of Boustead Holdings Bhd, has dropped its plan to delist the company, citing Covid-19 challenges.

"In light of the prolonged challenging economic environment arising from the Covid-19 outbreak and the reimplementation of the movement control order, alongside heighten risks and increased uncertainties to successfully complete the proposal, LTAT has decided not to proceed with the proposal at this juncture," Boustead said in filing with Bursa Malaysia today.

The statement was issued by Boustead on behalf of LTAT.

LTAT, which owns a 59.4% stake in Boustead, had in May last year said it is considering to privatise the company.

Since then, he fund was given two extensions by the Securities Commission to come up with a solid proposal to buy out the minority shareholders in Boustead.

The second extension expired on Feb 2.

"As a controlling shareholder of Boustead, LTAT is supportive of Boustead's plan to actively pursue and successfully execute its turnaround plans and growth strategies," the statement said.

Boustead, on Dec 1 last year, appointed former Telekom Malaysia Bhd boss Datuk Seri Mohammed Shazalli Ramly as its group managing director (MD) after the post was vacated by Datuk Seri Amrin Awaluddin.

"LTAT shall continue to review its options in line with LTAT's objective to preserve and enhanced the value of the assets under its portfolio and to improve long term returns to its contributors," it said.

Shares in Boustead were suspended from trading today to make way for the announcement.

The stock will resume trade tomorrow.