KUALA LUMPUR: MMC Corp Bhd plans to take full control of Northport operator NCB Holdings Bhd.
MMC, which already holds a 30.13% stake in NCB, is buying the combined 53.42% stake owned by Permodalan Nasional Bhd (PNB) and AmanahRaya Trustees Bhd for RM1.105bil, or RM4.40 per NCB share.
In a filing with Bursa Malaysia, the utilities and infrastructure group said on completion of the proposed purchase, its unit MMC Port’s shareholding in NCB would rise to 83.55% and hence MMC Port would make a mandatory general offer for the remaining NCB shares it did not already own at RM4.40 apiece.
NCB shares rose 1 sen to close at RM4.41 on Monday. The price has trended upwards since early June, gaining about 57%.
MMC said it did not intend to maintain the listing status of NCB on the Main Market of Bursa Securities.
On the rationale for the proposed acquisition, the company said it was in line with the board’s initiative to make further strategic investment in MMC’s core business of ports and logistics division, to strengthen the financial position of MMC and its subsidiaries.
“MMC Group 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 MMC Group to further strengthen its foothold in NCB, an established company in the port industry,” it said.
The proposed purchase of the 53.42% stake and proposed MGO are subject to the approval of the shareholders of MMC at an EGM to be convened.
