KUALA LUMPUR: Westports Holdings Bhd and Klang Port Management Sdn Bhd (KPM) jointly acquire Boustead Cruise Centre Sdn Bhd (BCC) from Boustead Holdings Bhd for RM230 million.
Westport inked an agreement with KPM, a wholly-owned subsidiary of Northport (Malaysia) Bhd (Northport), for the acquisition and will be paid by Westports and KPM in a 50:50 ratio.
Upon the acquisition, Westports and KPM will each jointly hold a 50 per cent shareholding in BCC.
"The acquisition gives each of us the opportunity to expand into the business of managing a cruise terminal.
"Our terminals at Westports occasionally accommodate cruise vessels. However, this business segment has been affected by the pandemic over the past year.
"Westports is of the view that there should be some reversion to the norm for the cruise business in the medium to longer-term," Westports group managing director Datuk Ruben Emir Gnanalingam said in a statement today.
BCC currently provides port facilities and services to cruise ships and navy vessels with its 69.8-acre facilities at Pulau Indah.
In addition to the jetty used to accommodate cruise ships and navy vessels, BCC also owns two parcels of land with a 5-storey terminal building and a car park built and another six parcels of adjacent land measuring 58 acres that has yet to be fully developed.
Westports will fund the acquisition from its internally generated funds, and the acquisition is expected to be completed within six months.
Westports and KPM will not assume any liability or guarantees from the acquisition of BCC.
"As terminal operators, Westports and Northport will jointly leverage on our expertise and network to explore potential logistics or other complementary business activities that could make use of BCC's sea-fronting parcels of land.
"BCC suffered losses before taxation in recent years, and Westports and Northport will acquire the company without assuming its existing liabilities," Ruben said.
He said Westports and Northport have discussed and planned to retain all the existing staff at BCC.
"BCC staff has been managing the main cruise terminal within Port Klang, and we value their work performance and experience.
"Westports and Northport will jointly explore additional business activities to improve BCC's future welfare as well as to promote the competitiveness of Port Klang," he said.