Published on June 17th, 2023 | by Sounder Rajen0
Boustead Said It Was Selling BHPetrol But The Next Day, Not Anymore, What?
So what is really happening here? Is BHPetrol to be sold or not?
Okay so on Thursday, 15 June 2023, The Star reported an article with the headline, “Boustead Holdings weighs RM2bil BHPetrol gas station sale, sources say” but the very next day on 16 June 2023 (Friday), The star reported another article with the headline “Boustead says it is not in talks to sell BHPetrol.” So which is it?
So apparently on 15 June 2023, Boustead Holdings, the owner of BHPetrol was considering divesting its gas stations in Malaysia and is seeking as much as 2 billion ringgit according to sources close to the matter. So this means that the company was looking to sell its shares in BHPetrol right? Not exactly.
Moreover, the very next day, it was reported that Boustead Holdings Bhd had clarified that it has not had any material discussions with any parties pertaining to the alleged sale of Boustead Petroleum Marketing Sdn Bhd (BHPetrol), fr the price of RM 2 billion or otherwise.
Now at this point, nobody knows how or why exactly this rumour of BHPetrol going on sale even started but somehow, it was reported that “Deliberations are ongoing and Boustead could still decide not to pursue a sale, the people (the sources close to the matter) said.” Obviously this is not true.
How do I know this? Because the next day, the very same source, The Star, reported that Boustead Holdings put out the following statement, “We wish to provide clarifications on the speculation based on unnamed sources in the article. It must be stressed that we have not had any material discussion to date on this matter and have not appointed any adviser for the reported potential corporate transaction as alleged.”
On top of that, on 16 June 2023, it was also reported that “BHB said its priority is to realign strategically, optimise its portfolio and allocate resources to areas that offer higher potential returns, driving sustainable growth while maximising returns for our shareholders in a timely manner.”
Well, whatever is happening, it is pretty clear that Boustead Holdings has no intention of selling it shares in BHPetrol and there is no good or even financially beneficial reason to do so, after all, with the oil and gas industry hitting record highs all over the globe despite initial projections, the sector is only going up from here.
Now, I am no financial expert nor do I follow the latest happenings in the world of oil and gas but I can wager a guess regarding what is happening here. Keep in mind that my guess is as good as yours but I think the most likely scenario is that someone at BHPetrol wanted their 15 seconds of fame and was willing to lie to get it.