Boustead unveils transformation plan


  • Corporate News
  • Saturday, 18 Jul 2020

The conglomerate said the programme comprised 20 initiatives that would transform Boustead into a high-performing and sustainable organisation.

PETALING JAYA: Loss-making Boustead Holdings Bhd has unveiled a three-year transformation programme to strengthen its prospects and unlock its value.

The conglomerate said the programme comprised 20 initiatives that would transform Boustead into a high-performing and sustainable organisation.

“The first phase of the Transformation Plan which we have already embarked on is aimed at restructuring Boustead and its subsidiaries in order to optimise value.

“This will enable us to remain resilient in the face of challenges ahead, ” chairman Datuk Seri Mohamed Khaled Nordin said in a statement.

Mohamed Khaled said the transformation programme would strengthen the group’s fundamentals and a definitive blueprint to propel Boustead over the next three years.

“We are confident that we will be able to weather through this challenging time and emerge as a stronger and more resilient organisation.

“We are dedicated to upholding the trust of our shareholders and this is part of our long-term commitment to create greater value.

“This will enable us to provide consistent and more sustainable returns to our shareholders, particularly our majority shareholder Lembaga Tabung Angkatan Tentera (LTAT) which will subsequently positively impact the retired members of the Armed Forces who benefit from our dividends, ” he said.

Notably, Boustead is a privatisation target of its majority shareholder LTAT, which is a yet-to-be finalised proposal at 80 sen per share.

Boustead is the umbrella holding company for LTAT, which controls several companies including Boustead Plantations Bhd, Affin Holdings Bhd and Pharmaniaga Bhd. LTAT owns 59% stake in Boustead.

For the first three months ended March 31, Boustead posted bigger losses of RM73.1mil compared to RM22.4mil losses a year earlier as the group took a beating from the coronavirus (Covid-19) pandemic.

Boustead said its hotels, heavy industries, properties and petrol station businesses were hit by the movement control order as business and household activity froze from the measures to contain the spread of Covid-19.

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