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Conglomerate Boustead Holdings Bhd (2771) plans to sell some assets to
raise up to RM600 million, which will be used to reduce debt and
strengthen its main businesses.
Photo: BH Petrol Delegates participating at the recent PetrolWorld Business Forum held in Langkawi, Malaysia.
The group, which has interests in plantations, property and banking,
also wants to have more petrol stations under its retail petroleum
business. "We want to rationalise our businesses and focus on
better-yielding assets," said Boustead group managing director Tan Sri
Lodin Wok Kamaruddin. Boustead's BHP petrol stations are making
money operationally and the group wants to expand this. "We intend to
open another 10 to 15 more outside Klang Valley. This will give
opportunity for armed personnel to go into business," he added.
Boustead, controlled by the Armed Forces Pension Fund, is one of
Malaysia's top 20 government-linked companies. Currently,
Boustead's plantation landbank totals some 90,000ha in Malaysia and
Indonesia. In the last five years, its average fresh fruit bunch yield
per mature area has dropped from 22.9 tonnes per hectare to 17.5.
Lodin explained the falling yield was dragged down by poor output at
its Indonesian estates. "We're working on improving yield and one of
the ways is to sell off low-yielding assets," he said. Last year,
Boustead sold some 22,500ha of oil palm estates in Indonesia and made a
RM30 million gain and RM8 million savings in financing cost. The group
still owns some 17,000ha in Indonesia, of which 8,000ha are already
planted. He expects the planned disposals to take place in two months.
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