Boustead acquires Port Klang land for RM310 mil
KUALA LUMPUR, July 23, 2014 – Boustead Holdings Berhad (BHB) is expecting to extract greater value for the conglomerate by expanding its presence in the oil and gas sector, with the proposed acquisition of nine parcels of land located in Klang, Selangor. The combined area comprises 69.88 acres in Pulau Indah and includes prime sea-fronting land. Total purchase consideration is RM310 million.
BHB announced today that its wholly-owned subsidiary, Bestari Marine Sdn Bhd, has entered into four conditional sale and purchase agreements with four companies in the Glenn Defense Marine (Asia) Sdn Bhd Group for the acquisition of the land which includes the Port Klang Cruise Centre (PKCC). PKCC sits on 11.82 acres and comprises a five-storey cruise terminal building and jetty.
The unique nature of the land involved will enable the BHB Group to strategically tap multiple opportunities including oil and gas, shipbuilding and ship repair, while developing its existing business in ship husbandry on the back of the cruise centre.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “We are excited about the potential value this move can bring to the Group as it is very much in line with our ongoing strategy to build up our portfolio of investments and strengthen our earnings potential. The acquisition puts us in an advantageous position to enhance our Group’s prospects.”
Upon completion of the acquisition, the Group plans to invest approximately RM100 million in the development of the land.
YBhg Tan Sri Dato’ Seri Lodin added, “Coupled with the BHB Group’s existing businesses via our Heavy Industries Division, this improves our capability to provide a wide range of services for the naval and maritime industries, and cements our position in the maritime sector while enlarging our presence in the oil and gas sector.”
“In addition, the cruise terminal is one of the few maritime gateways to Malaysia, and provides an opportunity to further expand our existing husbandry business to service a larger range of ships in the Asia Pacific region, and move up the value chain with an already well-established client base.”
Cruise lines utilising the terminal include Cunard Lines, Royal Caribbean, Princess Cruises, Costa Cruises and Star Cruises.
The RM310 million purchase consideration will primarily be funded by proceeds of RM200 million from the Group’s Perpetual Junior Sukuk Programme, and the balance via internally generated funds and bank borrowings.
The proposed acquisition is expected to be completed by the fourth quarter of 2014. RHB Investment Bank Berhad is the principal adviser to BHB Group for the acquisition.
Since its inception as a modest trading entity more than 180 years ago, the Boustead Group has grown by leaps and bounds to comprise more than 90 subsidiaries, associate companies and joint ventures, and has substantial interests in various sectors of the Malaysian economy. The Boustead Group's operations are focused in six key areas; plantation, heavy industries, property, finance & investment, trading & industrial and pharmaceutical. As at 31 March 2014, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM5.2 billion. Market capitalisation is currently in excess of RM5.6 billion.
Forward looking statements
This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Boustead Holdings Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
on behalf of: Boustead Holdings Berhad
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