PETALING JAYA: KUB Malaysia Bhd is considering plans to monetise its property assets as the group seeks to raise RM70mil to pay for expansion of its core businesses.
The group owns the 13-storey Menara Seri Kinta in Ipoh and one acre prime land in Petaling Jaya that has been earmarked for a commercial redevelopment project.
“We are considering to divest some assets to support growth of our core businesses,” president and chief executive officer Datuk Abdul Rahim Mohd Zin said.
In his presentation at the StarLive event on Saturday, Rahim said the group is exploring the possibility of setting up a new liquefied petroleum gas (LPG) terminal.
KUB, which derives three quarters of its revenue from the sale of household and industrial cooking gas, is considering bringing in a German company as a partner for the project.
A decision on whether to proceed with the project is expected next year. The new terminal, Rahim said, will allow the company to capture a bigger share of the cooking gas market in the region.
“The new gas terminal project will probably take about three years to complete,” he said.
At present, KUB owns and operates an LPG terminal with bottling and storage facilities at Westports in Klang. The gas business generated about RM110mil revenue in the first quarter ended March 31.
Meanwhile, the group is also looking to change the business model of its power division.
“We plan to develop new business that can generate recurring income for the group,” Rahim said.
He said the group is eyeing a project to refurbish a large central cooling plant as well as the development of a large-scale solar power plant project.
Rahim said the group is also looking to expand its fast food business.
The company, he said, has committed to spend more than RM20mil to open 25 new A&W outlets over the next three years.
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