SILK Holdings to set aside RM200m for marine logistics 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