KUALA LUMPUR: MMC Corporation Bhd, which has received its shareholders’ nod to acquire a 53.42 per cent stake in port operator NCB Holdings Bhd, has no intention of maintaining the listing status of the latter.
Upon completion of the proposed acquisition, MMC’s stake in NCB would increase to 83.55 per cent from 30.13 per cent now, said MMC Group Managing Director Datuk Seri Che Khalib Mohamad Noh.
He said 99.99 per cent of its shareholders support the takeover, which would yield RM4.40 per NCB share, and only a minority holding about 12,000 shares are against the deal.
“We strongly believe that we should be able to create value from this acquisition and it would be good for MMC,” he told the media after the company’s Extraordinary General Meeting here today.
The EGM was held to discuss the proposed acquisition of 251.195 million NCB shares for RM1.105 billion from Permodalan Nasional Bhd and Amanah Raya Trustees Bhd, as trustee for Amanah Saham Bumiputera, Amanah Saham Wawasan 2020 and Amanah Saham Didik.
According to the circular to the shareholders, the acquisition will be fully funded via bank borrowings, bringing MMC’s total bank borrowings to RM7.621 billion from the current RM7.28 billion.
Che Khalib also noted that the injection of NCB’s business into the group would not change the company’s current debt gearing of 0.85 times.
“We are buying a cash generating asset (NCB) and based on our assessment, it would be beneficial for a long-term prospect,” he said.
The addition of NCB into MMC is expected to create more synergies between all the ports through cost optimisation and rationalisation of personnel.
NCB, via its wholly-owned subsidiary Northport, operates two ports namely North Port and Southport in Port Klang, while MMC is currently operating Port of Tanjung Pelepas and Johor Port.
To a question, Che Khalib said the company is considering deepening Northport to adhere to the latest shipping requirement, but pointed out that it is still too early to divulge details. — Bernama