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Today, Boustead announced 2 disposals, one of its 30% stake in PT SMAC for US$600,000 and another of its 95.6% interest in Batam Logistics for S$955,556. In total, the transactions are expected to net them cash of S$1,795,556 (using 1 USD = 1.40 SGD). This will further add to their cash hoard. 
The gain to be recognized on PT SMAC is about S$425,000, while the gain to be recognized on Batam Logistics is S$690,000. In total, the gain to be recognized for FY 2010 from these transactions is about S$1,115,000 (S$1.15 million).
With these 2 disposals of non-core businesses, Boustead can now focus on its core businesses of specialized Engineering Services and Geo-Spatial Technology.
The gain to be recognized on PT SMAC is about S$425,000, while the gain to be recognized on Batam Logistics is S$690,000. In total, the gain to be recognized for FY 2010 from these transactions is about S$1,115,000 (S$1.15 million).
With these 2 disposals of non-core businesses, Boustead can now focus on its core businesses of specialized Engineering Services and Geo-Spatial Technology.
Dear all, Part 3 of Boustead's 1H FY 2010 Analysis and Review has been posted on my blog at http://www.sgmusicwhiz.blogspot.com. Please feel free to visit and leave comments. Thanks!
A snippet as follows:-
"Boustead Projects has managed to clinch a healthy pipeline of projects, as reflected by recent announcements to build Charles and Keith’s facility and also another for Singapore’s first private cancer hospital. However, the division’s revenue remains contract-based, which in my opinion is a weakness. It was mentioned previously in FY 2009 podcast that the Group wished to explore Design, Build and Lease contracts which could lock in recurring revenues and cash flows, but which offered a smaller margin compared to Design and Build contracts. Considering that Singapore’s real-estate sector is just emerging from the recession, there may be opportunities in time to come for REITs to buy over properties which are developed by Boustead Projects, thus ensuring the continuity of recognizing at least one sale of leasehold property transaction per financial year. In the meantime, prospects for the division should remain muted amid the uncertain global backdrop."