Boustead plans to sell non-performing assets

Friday June 27, 2008
Boustead plans to sell non-performing assets


KUALA LUMPUR: Boustead Holdings Bhd is looking to dispose of some of its non-performing assets and reduce its gearing to a more acceptable level.

Managing director Tan Sri Lodin Wok Kamaruddin said the company would be undertaking a new corporate exercise to unlock the value of its assets and investments.

“This includes the disposal of some of our non-performing assets to raise more money. We are also looking to lower our gearing to a more acceptable level,” he said yesterday after shareholders at its EGM approved the proposal to take Boustead Properties Bhd private.

Currently, Boustead controls 86% of Boustead Properties. It has given Boustead Properties shareholders till July 10 to accept the RM5.50 per share offer.

Lodin said shareholders had expressed concern over the gearing as payment in cash had to be made to Boustead Properties shareholders who accepted the offer.

He also said Boustead would focus on its six core businesses: properties, plantation, finance, heavy industries, manufacturing and trading.

He said the company was looking to increase its plantation land.

“We will continue to expand as and when we get the opportunity to increase the land-bank. But it must be for the right reason, price and location.

“We are considering options to purchase plantation land in Sabah and Sarawak and we are actively scouting for it there,” he added. – Bernama