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Silk to focus more on marine after selling highway unit

Silk to focus more on marine after selling highway unit
Signalling its shift in focus to maritime, Silk Holdings said it plans to use over half of the proceeds from the divestment of its highway concession holding unit Sistem Lingkaran-Lebuhraya Kajang to strengthen its maritime logistics business.

About MYR200m ($45.2m) of the MYR380m Malaysian sovereign wealth fund Permodalan Nasional Bhd (PNB) proposed to pay for the unit will be used while about MYR70m will be allocated for a special dividend and the rest will be set aside as working capital, executive chairman Mohd Azlan Hashim was quoted as saying in local media.

“We know the that the oil and gas sector is on a extended downcycle. But with that, there will also be opportunities to invest. Our upstream and downstream marine logistics businesses have good track records and we are going to focus on those.

“Our plan to expand is quite opportunistic in nature at this juncture,” said Mohd Azlan.

Silk Holdings, through its Jasa Merin unit, it one of the biggest offshore supply vessel players in Malaysia.