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.