Kuala Lumpur, 19 March 2021 – Boustead Holdings Berhad (BHB) has taken another step to fortify its Reinventing Boustead initiative by disposing its Klang-based international cruise terminal and stay focused on the core investments.
The Company today entered a conditional share sales agreement with Westports Holdings Berhad and Klang Port Management Sdn Bhd to dispose Boustead Cruise Centre Sdn Bhd (BCC) at RM230 million which comprises a terminal in Pulau Indah, Port Klang and 69.88 acres of land.
Dato’ Sri Mohammed Shazalli Ramly, BHB Group Managing Director said the sales would help to speedily monetise the Company’s non-core investment and strengthen its liquidity and immediate cash flow.
“BCC has been facing challenges in optimizing its operation to generate steady profits since 2015 and it will continue to face challenging business prospects in the near future as the tourism and cruise industry is not expected to resume operations until at least later of this year with a majority of major cruise liners currently suspended.
“We also believe that the Cruise Terminal business does not fit into our Reinvention plan to propel Boustead further. It is not our core investment, thus best we let the experts in port management run the terminal.
“This deal is part of our strategy to realign all our investments as the proceeds from this initiative will be channeled to reduce BHB’s bank borrowings with an estimated interest savings of RM6.2 million per annum which will reduce the gearing cost,” he said.
About Boustead Holdings Berhad
Boustead Holdings Berhad (‘Boustead’), one of Malaysia’s oldest conglomerates, is Lembaga Tabung Angkatan Tentera (‘LTAT’)’s investment arm. The diversified Group comprises more than 90 subsidiaries, associate companies and joint ventures, and has substantial interests in various sectors of the Malaysian economy.
Its operations are focused in five key areas namely plantation, heavy industries, property & industrial, trading, finance & investment, and pharmaceutical.
Since its inception as a modest trading entity more than 190 years ago, the Boustead Group has grown by leaps and bounds. As at 30 September 2020, Boustead Holdings Berhad’s paid-up capital was RM2.7 billion while its shareholders’ funds stood at RM3.5 billion. Market capitalisation is currently in the region of RM1.3 billion. For more information on Boustead, log on to www.boustead.com.my
For more details, please contact Boustead’s Group Corporate Communications Department at firstname.lastname@example.org.