Boustead Holdings is reportedly looking to dispose of its stake in Boustead Petroleum Marketing (BPM), which operates petrol stations under the BHPetrol brand. The Edge reports that discussions with a potential individual buyer are ongoing, with several other parties interested in the assets waiting on the sidelines.
“This (waiting on the sidelines) is because the price tag being bandied about is more than RM1 billion, maybe even RM1.5 billion, or more,” a source familiar with the matter told the publication. He said that despite the price, there are quite a few parties looking at a deal, waiting to see the valuation being sought by Boustead Holdings.
BPM retails petrol, diesel and liquefied petroleum gas (LPG) products as well as lubricants and operates more than 380 petrol stations across the country. The company is 70% controlled by Boustead Petroleum and 30% by Lembaga Tabung Angkatan Tentera (LTAT).
The latter has a 59.45% stake in Boustead Holdings. The report adds that considering the shareholding structure of Boustead Holdings and LTAT, it looks unlikely that LTAT will remain in BPM if Boustead Holdings – which also has interests in defence, pharmaceuticals, heavy engineering, plantations and property development – exits the business.
Shareholders of Boustead Petroleum are Boustead Holdings, which has a 59.82% stake, PE Petroleum (21.11%), Vitol Malaysia (14.07%) and Tan Sri Che Lodin Wok Kamaruddin (5%), who previously helmed both Boustead Holdings and LTAT.
A check by the publication reveals that PE Petroleum is wholly owned by a company called Hesselink Investments, while Vitol Malaysia is wholly owned by Vitol Malaysia BV, a unit of the Dutch oil giant Vitol. A source highlights that Vitol could be interested in the business, but the report says that this is unsubstantiated.
Other names that have been bandied include Petronas Dagangan, which has more than 1,000 petrol stations nationwide, and Petron Malaysia Refining & Marketing, which operates more than 640 petrol stations across the country, but these too remain very much conjecture.
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Great move by Boustead since they sold the AES.
BHP has the best fuel and additive in the market
pity, much better than petronas. Nobody fills up petronas unless government vehicles
You sounded like someone who never seen a petronas station in your life. Are you even malaysian?
NOOOOOOO!!!!! BHP is my favourite petrol brand.
But then again, running petrol retail sector isn’t easy here, low margin coupled with high operations costs. Some big brands has exit Msia over the decade like BP, ProJet (bought over by Shell Msia), ExxonMobil (bought over by Petron).
BHP sell to Petro Venezuela ,
If sold to Petron then we know ini salah siapa.
We already know SALAH SIAPA. BHP is owned by Boustead.. the investment arm of LTAT… Lembaga Tabung Angkatan Tentera. They invest into BHP to top up veteran soldier’s pension fund..!
This is the same thing happening when Govt had pressured Boustead to sell its Royale Chulan Hotel..! Govt milking the GLCs dry…! It will have long term repercussion to the pension fund..!
LTAT is now under a professional management that is nobody’s buddy unlike under the previous administration which placed a person close to former PM although he was a seasoned corporate professional. It probably was not the government’s decision to sell.
Do these people knew what they were talking about? Low margin? Take a look at Petron Malaysia EPS and ROE.
No wonder Malaysia is no longer competitive. Always enjoy monopoly businesses but still got ppl cry low margin. What do you want to consider high margin? RM5 per litre ok or not?
Typical political business thinking.
The margin is there meaning there is profit. We are talking confirmed profit here yet they kept on barking. All this time thinking when business means guaranteed earning millions of profit.
Would be nice to see Exxon make a return to retail fuel sector. Unlikely though.
What?? Isn’t Exxon Mobil one of the biggest petroleum companies? St Miguel subsidiary Petron bought over South East Asia operations of Exxon
Jual semua aset kerajaan! Biar swasta untung kaya..
Birkin tak murah ooo… diorang beli, Rakyat bayar.
Takpe. Birkin ada harga RV. Kuda kat Argentina tu takde RV. Makan saja tau. Diorang bagi makan, rakyat bayar.
Jgn bagi ko makan lagi elok,menghabih boreh je.
Kuda boleh disewakan.
No….the best fuel in the market…
If new owner does not sell the same product instead transform into whichever company that buys it….closure is for sure for the operators.
My main source of Euro5 diesel… hope the new owner continues selling this…
sedih…