(Bloomberg) -- Kuala Lumpur Kepong Bhd. is in talks with Malaysia’s military pension fund to rework a deal announced in August for the oil palm planter to buy a stake in rival Boustead Plantations Bhd., according to people familiar with the matter.

Lembaga Tabung Angkatan Tentera, the indirect owner of a majority of Boustead Plantations’ shares, and KLK are discussing a deal structure that would let the pension fund retain control of the company, the people said. The existing transaction, which hasn’t been completed, is set to trigger a mandatory offer for the remaining minority shares, potentially giving KLK a controlling stake.

LTAT and its unit Boustead Holdings Ltd. had agreed in August to sell about a 33% stake in Boustead Plantations to KLK for around 1.15 billion ringgit ($243 million). The price per share of 1.55 ringgit each wouldn’t change as part of any revised deal, the people said, asking not to be identified as the process is private.

Shares of Boustead Plantations and KLK have been suspended since Tuesday.

Deliberations are ongoing and there is no certainty that the parties will proceed with a deal, the people said. A representative for LTAT said that, as Boustead Plantations and KLK are listed companies, they would make the requisite announcements on the decision via the Bursa Malaysia. A representative for KLK didn’t immediately respond to requests for comment.

The cut-off date for a potential transaction has been extended to Oct. 6, and the deal is still awaiting a final decision, Boustead Plantations and KLK told Malaysia’s stock exchange in a joint filing on Tuesday. The filing was issued in response to a report in local outlet The Edge, citing unnamed people, saying that the deal had been scrapped.

LTAT and Boustead Holdings own 12% and 57% stakes respectively in Boustead Plantations, while KLK has a 3% stake, data compiled by Bloomberg show. KLK has a market value of 23.2 billion ringgit, making it the third-biggest listed plantation company in Malaysia after Sime Darby Plantation Bhd. and IOI Corp.

--With assistance from Ram Anand.

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