MMC Corp Bhd has bought a further 9.08% stake in logistics and port operator NCB Holdings Bhd, boosting its shareholding to 30.13% as it seeks to remain a key player in the ports industry in Malaysia.
In a filing with Bursa Malaysia yesterday, MMC's wholly-owned subsidiary, MMC Ventures Sdn Bhd (MMCV), entered into an agreement for sale and purchase of shares with Kumpulan Wang Persaraan (Diperbadankan) (KWAP) to acquire shares.
All in, over the last eight months, MMC has forked out RM494.73mil for its present stake in NCB, the owner of Northport (M) Bhd and Kontena Nasional Bhd. The acquisition will be done via an off-market direct business transaction and is expected to be completed by the fourth week of July 2015.
The purchase, to be fully financed by internally generated funds, is in line with the initiative of the MMC board of directors' to make further strategic investment in the company's core business namely ports and logistics, said MMC.
“The acquisition is in line with the initiative of the MMC board of directors to make further strategic investment in MMC’s core business, that is ports and logistics division, to strengthen MMC and its subsidiaries’ financial position,” it said.
MMC expects the acquisition to contribute positively to the group’s future earnings. It added the purchase consideration to be paid by MMC would be from its internally generated funds.
“There are no liabilities, including contingent liabilities or guarantees to be assumed by MMCV pursuant to the acquisition,” it said.