Westports Northport Jointly Buy Boustead Cruise Centre For Rm230mil


 
Westports group MD Ruben Emir Gnanalingam said that the existing personnel at BCC would be retained. (bousteadcruise.com pic)KUALA LUMPUR: Westports Holdings Bhd and Northport (M) Bhd have agreed to jointly acquire Boustead Cruise Centre Sdn Bhd (BCC) for RM230 million.
The centre, a subsidiary of Boustead Holdings Bhd, currently provides port facilities and services to cruise ships and navy vessels with its 28.25ha facility in Pulau Indah in Klang.
On completion of the transaction, Klang Port Management Sdn Bhd (KPM), the wholly-owned subsidiary of Westports and Northport, would each hold a 50% stake in BCC, Westports said in a statement today.
Westports group managing director Ruben Emir Gnanalingam said the acquisition would give each party the opportunity to expand into the business of managing a cruise terminal.
“Our terminals at Westports occasionally accommodate cruise vessels. This business segment has been affected by the pandemic over the past year but some reversion to the norm for the cruise business in the medium to longer-term is expected,” he said.
In addition to the jetty used to accommodate cruise ships and navy vessels, BCC also owns two parcels of land with a five-storey terminal building and car park facilities, and another six parcels of adjacent land that have yet to be fully developed.
Westports said it would fund the acquisition from its internally generated funds, and the acquisition was expected to be completed within six months.
The two buyers would not assume any liability or guarantees from the acquisition, it added.
“As the operators of the two ports that make up Port Klang, Westports and Northport will jointly leverage 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,” said Ruben.
He also said that the existing personnel at BCC would be retained.
“The 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 welfare, as well as to promote the competitiveness of Port Klang,” he said. - FMT


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