SILK Hold­ings to set aside RM200m for marine lo­gis­tics busi­ness

New Straits Times - - Business -

KUALA LUMPUR: SILK Hold­ings Bhd will set aside RM200 mil­lion out of the RM380 mil­lion it will re­ceive from the dis­posal of a high­way con­ces­sion to strengthen its marine lo­gis­tics busi­ness.

The com­pany will also dish out spe­cial div­i­dends of 10 sen a share, in­volv­ing a RM70 mil­lion pay­out to share­hold­ers.

Its share­hold­ers yes­ter­day ap­proved the sale of Sis­tem Lingkaran Le­buhraya Ka­jang Sdn Bhd (SILK) to Per­modalan Na­sional Bhd (PNB).

“Our share­hold­ers and bond­hold­ers have given the green light to this con­ces­sion sale to PNB,” said SILK Hold­ings ex­ec­u­tive chair­man Datuk Mo­hammed Azlan Hashim.

The deal is now pending ap­proval from Unit Ker­jasama Awam Swasta in the Prime Min­is­ter’s Depart­ment.

“PNB is con­duct­ing a due dili­gence on this pur­chase. We’ve re­quested an ex­ten­sion un­til the end of next month to com­plete this deal,” he said af­ter share­hold­ers meet­ing, here, yes­ter­day.

SILK is the con­ces­sion holder of the 37km Ka­jang Traf­fic Dis­per­sal Ring Road un­der a 36-year con­ces­sion end­ing July 31 2037. Apart from its high­way di­vi­sion, SILK Hold­ings is also in the oil and gas (O&G) sup­port ser­vices busi­ness.

In May last year, it ven­tured down­stream and bought three chem­i­cal tankers from Boustead Heavy In­dus­tries Corp Bhd for RM73.5 mil­lion.

“As of now we have 20 ves­sels for our O&G sup­port ser­vices and three chem­i­cal tankers. We will con­tinue to in­vest in the O&G seg­ment de­spite its volatil­ity as the market is cycli­cal,” said Azlan. “What goes down must come up and the O&G seg­ment will con­tinue to be one of the coun­try’s main eco­nomic gen­er­a­tors.”

As of De­cem­ber last year, the O&G sup­port ser­vices is the main rev­enue con­trib­u­tor to SILK Hold­ings.

Azlan said SILK Hold­ings would also change its name as “it would be a mis­nomer to carry on with the cur­rent name when we no longer own the high­way con­ces­sion”. Ooi Tee Ching

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