The divestments and potential IPOs will involve a wide range of industries
by NUR HANANI AZMAN / Pic by TMR FILE PIX
BERJAYA Corp Bhd (BCorp) plans to reduce its debt level to RM2.5 billion from RM5 billion over three years through its new three-year strategic plan (2021-2024) which includes divesting non-core assets.
The group will seek to raise cash through divestments worth RM2 billion over the next two years and raise that to RM5 billion of divestment over five years, group CEO Jalil Rasheed said.
“We had identified at least 60 dormant companies across its business segments to either go through merger and acquisitions, IPOs or divestments. We are waiting for the right timing and will reveal as and when it happens.
“The divestments and potential IPOs will involve a wide range of industries. We have established a team to look at identifying these in order to raise money and divest there,” he told reporters at a virtual briefing on the strategic plan yesterday.
BCorp’s three-year strategic plan (2021-2024) aims to transform the diversified group into an institutionalised high-performing organisation as it transforms into a consumer group with five focused core business segments.
The five business segments to be reorganised are retail (consumer marketing and distribution, food and beverage); food franchises and food trading; property (property development, investment properties and affordable housing); hospitality (hotels and resorts, recreation clubs and services), and gaming (environment, digital services and financial technology).
The segments will be led by respective sector heads with oversight from the group CEO. BCorp would also adopt a dividend policy for all its operating companies, Jalil said.
This reorganisation will see BCorp, as the holding company, led by the group CEO and a senior leadership team, playing a strategic role, and the operating companies taking on the operational and administrative functions.
Jalil said Covid-19 pandemic has made the group rethink what sort of business it wants to be in the future.
“This segment (consumer) regardless of how the situation will consistently be there and relevant even in 10 or 20 years from now.
“If you look at the five sectors we want to be, those are old traditional economic sectors. What we need to do is to modernise by adopting digital and trends,” he explained.
The group doesn’t have a plan to venture into digital banking despite BCorp having a stake in Razer Fintech.
“I’ve spent the past three months studying the businesses in detail and this strategic plan is to address the gaps we have (focus, discipline) and enhance the strengths (established brands in growth sectors).
“This process will optimise our resources better, improve synergies and efficiency within the group, and enhance corporate governance and transparency. This, in turn, will transform BCorp into a high-performing organisation and realise the unlocked value of the business,” he added.
When asked whether Tan Sri Vincent Tan has less influence in BCorp now, Jalil said the founder and controlling shareholder remains as a non-executive chairman and is not involved in day-today management.
“I still speak to him on the strategic direction of the business, we also discuss on the list of divestments we had identified. He plays a big role in the group.”