MMC in Talks Over Borneo Ports Stake
Malaysian Infrastructure company MMC Corporation (MMC) is in talks over acquisition of interest in a ports operator, aiming to strengthen its grip on Malaysian Ports.
MMC, as operator of the Port of Tanjung Pelepas, Malaysia's largest container terminal, is an infrastructure group with businesses in ports, logistics, energy and construction.
Another company, Suria Capital Holdings (Suria), currently operates eight ports in the Malaysian state of Sabah on the island of Borneo, having officially taken over the management of all port operations from Sabah Ports Authority in 2004.
The eight Borneo ports are in Sepanggar where it operates two ports, Kota Kinabalu, Sandakan, Tawau, Kudat, Kunak and Lahad Datu.
Now Suria has confirmed that it is in discussions regarding the transfer of a stake in its ports subsidiary to MMC Port Holdings.
Suria was responding to an article which had appeared in the press speculating on the talks.
Suria in an announcement on August 10, 2017 said: “We wish to clarify that the discussion between MMC Corporation Berhad (MMC) and Suria with regards to the proposed acquisition of a stake in Sabah Ports by MMC Ports Holdings Sdn Bhd, a wholly-owned subsidiary of MMC, has taken place.”
Suria’s board of directors have yet to make any firm decision in relation to the deal.
They will make further announcements following developments relating to the proposal.