The Malaysian Reserve (TMR) said the land, which is being purchased for $29.5m, will be used for terminal expansion, which will be possible following its ongoing land reclamation work.
“The current preliminary port design for Container Terminal 10 to Container Terminal 19 requires additional land acreage to accommodate new wharf and container yard space in order to facilitate the effective operations of new container terminals,” WHB told the business news provider.
“The terminal expansion will only be possible after the land reclamation is carried out at its existing Container [Terminals] 6, 7, 8 and 9.”
WHB said the purchase will occur entirely through cash derived from internally-generated funds and bank-borrowings, also noting that the proposed acquisition will have no effect on its share capital, earnings per share and net assets for the financial year ending December 31, 2018.
TMR said the execution of the deal was anticipated to take place within two weeks of the first payment — which was agreed to happen on May 2.
