Infrastructure company MMC Corp has announced plans to strengthen its presence in Malaysia’s port sector by acquiring a majority stake in NCB Holdings for more than US$258 million, according to Seatrade Maritime.
MMC Corp said that is had agreed to buy a 53.4% stake, bringing its total stake to 83.55%, with the option to buy out the remaining minority shareholders.
The deal will give MMC a foothold in every major container port on the west coast of the Malaysian Peninsular.
MMC said: “It expects the proposed acquisition to contribute positively to its future earnings and will help in maintaining its position as a key player in the ports industry in Malaysia, as well as providing a good opportunity for the MMC group to further strengthen its foothold in NCB, an established company in the port industry.
“The proposed acquisition is in line with the initiative of the board to make further strategic investments in MMC’s core business of the ports and logistics division, to strengthen the financial position of the MMC group.”
The deal is expected to be completed by Q1, 2016.