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KUALA LUMPUR: Boustead Holdings Bhd
has signed a RM230mil deal to sell its entire stake in a cruise terminal in Klang, Selangor to the new co-owners, Westports Holdings Bhd and MMC Corp Bhd.
Westports will acquire a 50% stake in Boustead Cruise Center Sdn Bhd (BCC) for RM115 thousand in cash, while MMC Corp, through a unit Klang Port Management Sdn Bhd, will take the remaining 50% stake also for the same price of RM115mil.
BCC’s main activity is the provision of port facilities and services to cruise ships and navy ships.
He is also the registered owner of nine parcels of land (including buildings and jetty) measuring approximately 69.8 acres in Klang.
Ultimately, Boustead is of the view that the sale will allow the group to exit a side business that has been incurring losses since 2015 and is expected to continue to generate losses in the short term, as the tourism industry and cruise ships”. to resume operations until at least the second half of 2021 with most major cruise ships currently suspended, “Boustead said in a presentation to Bursa Malaysia today.
The sale, he said, will reduce the group’s leverage and strengthen its liquidity and cash flow position, since RM120 thousand and RM 105.8 thousand of the proceeds are destined to partially pay the group’s loans, which are estimated to generate interest savings of approximately RM6.2 thousand per year and working capital requirements, respectively.
Meanwhile, Westports group managing director Ruben Emir Gnanalingam said the acquisition provided the group with an opportunity to expand into the cruise terminal business.
“Westports believes that there should be some reversion to the norm for the cruise business in the medium and long term,” it said today in a separate statement.
“BCC also owns six adjacent parcels and a parking lot measuring a total of 58.0 acres. As terminal operators, Westports and Northport will jointly leverage our expertise and network to explore potential logistics or other complementary business activities that could make use of Parcels of Land. in front of the BCC sea, “he added.
He noted that while BCC had suffered pre-tax losses in recent years, Westports and Northport will acquire the company without assuming its existing liabilities.
Klang Port Management is a unit of Northport (Malaysia) Bhd.
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