<article><a style="color: #000080;" href="http://www.mmc.com.my/home.asp">MMC Corporation Bhd</a> has agreed to purchase 49 per cent stake in Malaysia’s oldest port operator <a href="http://penangport.com.my/">Penang Port</a> for RM200 million, from Seaport Terminal (Johore) Sdn Bhd.</article>

<a style="color: #000080;" href="http://www.mmc.com.my/home.asp">MMC Corporation Bhd</a> has agreed to purchase 49 per cent stake in Malaysia’s oldest port operator <a href="http://penangport.com.my/">Penang Port</a> for RM200 million, from Seaport Terminal (Johore) Sdn Bhd.
Seaport Terminal is a major shareholder of MMC.
The acquisition will be conducted entirely in cash, the utilities and infrastructure group said in a regulatory disclosure.
The tentative seller, which is also a major shareholder in MMC Corp with a 51.76 per cent shareholding, will retain its 51 per cent ownership in Penang Port.
The agreement comes with conditions that the port company will dispose its loss-making ferry services comprising assets such as vessels, employees, costs and liabilities.
The acquisition is expected to be completed in the first quarter of 2017.
MMC Corp said the acquisition proposal was in line with its initiative to make further strategic investments core businesses like ports and logistics, in order to strengthen the group’s financial performance and position.
“In addition, the proposed 49 per cent acquisition will bode well for the MMC Group in its effort to maintain its position as a key player in the ports industry in Malaysia as well as to provide a good opportunity for the MMC Group to establish its foothold in Penang Port,” it said.
Penang Port is currently undertaking a programme to turnaround the port to be more competitive and profitable, which includes reducing operating costs, increasing port efficiency, providing additional services for cargo handling activities as well as continuous port infrastructure development in line with industry demand.
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Malaysia: MMC Corp to acquire 49% in Penang Port

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Malaysia: MMC Corp to acquire 49% in Penang Port

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