Penang port attracts investor
Nearly half of Penang Port is to be bought by utilities and infrastructure group, MMC Corp, the company said in a filing with the Malaysian stock exchange.
MMC’s Board of Directors told the exchange it had entered into a conditional Share Sale and Purchase Agreement with Penang’s parent company Seaport Terminal (Johore) to acquire 35,990,501 ordinary shares in PPSB representing approximately 49.0% ordinary equity interest for RM200m ($50.1m).
The money will come from internally generated funds and/or bank borrowings, the proportion of which will be determined at a later stage, MMC said in a later statement.
The proposed acquisition is considered a related party transaction as Seaport is a major shareholder in MMC.
It is also in line with MMC Group’s initiative to make further strategic investments in one of MMC’s core businesses, that is ports and logistics, the exchange filing said. This “would contribute positively” to MMC’s future earnings, it added.
MMC already has the operations of Port of Tanjung Pelepas – Malaysia’s largest container terminal – Johor Port and Northport in Port Klang as well as a stake in Jeddah Islamic Port in Saudi Arabia.
MMC is known to be considering bundling its ports into a separate company for possible listing next year.
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