Jalil Rasheed sets path to BCorp revival, plans RM5bil non-core asset sale


KUALA LUMPUR: Berjaya Corp Bhd's group chief executive officer Jalil Rasheed is laying the groundwork for the company to dispose RM5bil worth of non-core assets over the next five years and to halve its current debts of RM5bil in three years.

The 38-year old former fund manager in unveiling his three-year strategic plan, said the diversified group would be reorganised into five key business areas - retail, food & beverage, property, hospitality and services that includes gaming, environment, digital services and financial technology.

“This process will optimise our resources better, improve synergies and efficiency within the Group, and enhance corporate governance and transparency," he said in a statement outlining his three-year strategic plan for the group.

"This in turn, will transform BCorp into a high performing organisation and realise the unlocked value of the business,” he added.

Last week, BCorp announced that it has exited the Peugeot dealership business by selling its 51% stake Berjaya Auto Alliance Sdn Bhd for RM6.67mil.

Jalil, the former president and CEO of Permodalan Nasional Bhd, was tapped to lead BCorp in March.

He was given the mandate by founder Tan Sri Vincent Tan to take a fresh look at BCorp's corporate structure and turn the group into a high performing business organisation.

Earlier today, he held a staff townhall meeting to announce the strategic plan.

The "direction has been set," Jalil tweeted today, "but the hard work begins in executing these polices."

He conceded that the "group is undervalued" in its current state and that the strategic plan he said would "address that and close the valuation discount."

Under the plan, Jalil said the group would be streamlined to focus on "sub-segments & countries which we want to be in," while pursuing sale of "non- core businesses and merger of overlapping businesses."

Key headlines identified in the statement includes;

- Divestments worth RM2bil over 2 years and RM5bil over 5 years

- Reducing BCorp debt level from RM5bil to RM2.5bil over 3 years

- Dividend policy for all operating companies

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