KUALA LUMPUR, 17 August 2021 – Boustead Holdings Berhad (Boustead) today announced that it has taken another step in its Reinventing Boustead strategy by exiting from its venture in the University of Nottingham in Malaysia (UNM).
The strategy focuses on rationalising non-strategic assets as well as accelerating the Group’s performance improvement by capitalising on emerging opportunities for value creation within existing core businesses, while at the same time ensuring it is managing costs well and maximising returns to shareholders.
In line with that direction, Boustead has decided to enter a conditional share sales agreement with the University of Nottingham, United Kingdom, releasing its 66.41% controlling stake and a campus in Semenyih, Selangor for £23.5 million (approximately RM137 million). The University of Nottingham now aims to become the majority shareholder in UNM by purchasing, through a wholly-owned Malaysian subsidiary, Boustead’s shares in UNM.
Boustead Group Managing Director Dato’ Sri Mohammed Shazalli Ramly said, “While we are proud to have UNM as a prestigious addition to our portfolio, the exit will allow us to further capitalise our strengths and resources more effectively in supporting the development of education in Malaysia on a wider scale.
“As a government linked company, Boustead will continue to create other forms of collaboration and partnership that will help prepare valuable future talents particularly in digital technologies, renewable energy and Internet of Things, amongst others.
“We will continue to build on the established relationship with UNM, while nurturing relationship with other local tertiary institutions including Universiti Teknologi MARA and Universiti Pertahanan Nasional Malaysia, focussing on research and development in the areas of pharmaceutical, plantation, marine and aerospace, as well as oil and gas which are aligned with Boustead’s core strengths.
“By placing UNM under the full stewardship of the University of Nottingham, we trust that UNM will continue to accomplish great things in the future. The University of Nottingham is an esteemed global institution and we extend our best wishes for all the upcoming endeavours of UNM,” he said.
UNM Vice-Chancellor Professor Shearer West said: “Our commitment to UNM and Malaysia remains as strong as ever. This transaction will allow us to build on exceptional foundations in teaching and research to develop new, innovative teaching programmes and research that supports sustainable development locally, regionally and globally.”
CIMB Investment Bank Berhad and Messrs Zul Rafique & Partners are the advisors for BHB in this transaction.
UNM is a private university branch campus of the University of Nottingham and the first campus of a British university in Malaysia. Boustead is the majority shareholder of UNM since its campus establishment in 2000. In partnership with YTL Corporation Berhad and the University of Nottingham, UNM was formally announced in 1998 and welcomed its first 89 students in September 2000 in Kuala Lumpur. In 2005, UNM relocated to a 118-acre campus in Semenyih. In 2006, UNM reopened a Kuala Lumpur branch in Chulan Tower, Jalan Conlay to instruct MBA students. Among the distinctions earned by UNM are the Queen’s Awards for Enterprise 2001 and the Queen’s Award for Industry (International Trade) in 2006.
Forward looking statements
This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of Boustead 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.
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 email@example.com.