Kuala Lumpur: In big Malaysian port news MMC Corporation is spending RM221.98m ($66.3m) buying out shipping line MISC’s stake in port operator NCB Holdings. NCB Holdings runs container terminals at Northport in Port Klang while MMC, controlled by tycoon Syed Mokhtar, controls the Port of Tanjung Pelepas (PTP), Johor Port as well as the Red Sea Gateway Terminal in Jeddah, Saudi Arabia. MMC is buying 73.99m shares at RM3 each.
“The acquisition is in line with the initiative of MMC to make further strategic investment in MMC’s core business, i.e. Ports and Logistics division, to further strengthen MMC Group’s financial position. It is also expected that the Acquisition would contribute positively to the future earnings of the MMC Group,” MMC said, adding: “It provides a good opportunity for the MMC Group to acquire a strategic stake in an established company in the ports and logistics sector.”
For MISC, which exited the container trades a couple of years, the move is in line with its parent, energy giant Petronas, to get the line to focus on its core activities, namely tanker shipping. [27/11/14]