MMC to buy remaining 51% stake in Penang Port

mmc-penang

KUALA LUMPUR: MMC Port Holdings Sdn Bhd, a wholly-owned unit of MMC Corp Bhd, has proposed to acquire the remaining 51% equity interest in Penang Port Sdn Bhd for RM220 million cash.

In a filing to Bursa Malaysia today, MMC Corp said the exercise was undertaken to gain full control of Penang Port and place itself in a position to determine the future strategic direction of the port.

“The proposed acquisition presents an opportunity for MMC Corp to consolidate Penang Port’s earnings in full.

“This, in turn, is expected to contribute positively to the future earnings of the MMC group,” it said.

MMC Corp said the acquisition boded well for the group’s effort to maintain its position as a key player in the Malaysian ports industry.

It would also allow the group to tighten its foothold in Penang Port, it said.

On funding, MMC Corp said the exercise would be paid via a combination of internally-generated funds and/or bank borrowings.