PETALING JAYA: Berjaya Corp Bhd (BCorp) today unveiled a three-year strategic plan to focus on being a global consumer group and transform into being an institutionalised high performing organisation, which entails halving its debt to RM2.5 billion in three years and divestments worth RM2-5 billion over two to five years.
Group CEO Jalil Rasheed said it will also introduce a dividend policy across all of the group’s operating companies.
“I have spent the past three months studying the businesses in detail and this strategic plan is to address the gaps we have and enhance the strengths by establishing brands in growth sectors,” he told the media during a virtual briefing on its strategic plan.
“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.”
Under the plan, the existing conglomerate will transform itself into a consumer group with five focused core business segments – retail, food & beverage, property, hospitality, and services. The services segment includes gaming, environment, digital, and fintech.
Following the reorganisation, BCorp will take on a strategic role while the operating companies will take on the operational and administrative functions.
The group CEO stated that the restructuring plan will not result in changes in its listed entities.
He elaborated that it would like to do some legal rationalisation of the entities for it to be cleaner and more clear cut. “In the future, there could be more listed entities but for the time being no. The focus now is to make the group much leaner and more operationally efficient.”
As for overseas footprint, Jalil said BCorp has evaluated the various markets and has identified some potential exits across its wider range of business. “We are looking at it and we know what we want to keep. I don’t think the countries will change a lot.”
He pointed out that BCorp has pared down its exposure in China and Vietnam over the years and it will continue to do so.
Meanwhile, its hospitality business in Japan has worked out well and it is likely to have a bit more in the market in the coming years.
“It is a combination of stuff, it is not just about paring down overseas but a reorganisation to see what’s the best value and where it has given us a greater comfort level and returns.”
The group CEO revealed that it has identified at least 60 dormant companies across its business segments, and has plans for them to go through mergers and acquisitions, initial public offerings (IPOs) or divestments.
“We have identified them all. It is something we 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 them in order to raise money and to divest,” he said.
