MISC’s disposal of inland container depot asset marks group’s growing focus on its core

KUCHING: MISC Bhd’s (MISC) disposal of its 25 per cent stake in Trans-Ware Logistics (Private) Ltd ( TWL) marks the group’s growing focus on its core energy transportation business, analysts observed.

MIDF Amanah Investment Bank Bhd’s research arm ( MIDF Research) in a recent report, the disposal of its stake in TWL also marks the group’s departure from the inland container depot business.

The container storage and transport operations of TWL have been discontinued back in November 2006, providing ground for such disposal by MISC Enterprises Holdings Sdn Bhd ( MEH), MISC’s unit.

Prior to this, the research team pointed out that MISC exited the tank terminal business via the disposal of a 45 per cent stake in the said business to Dialog Group for RM193 million less than two months ago.

“In view of this, MISC’s disposal of its non- core assets would enable greater focus on its core energy transportation business,” it opined.

While the disposal consideration of RM4.2 million represents less than 0.1 per cent of MISC’s total assets which is very small, the research team viewed such corporate exercise as essential to MISC’s move to slowly provide emphasis on its core businesses.

“Henceforth, we think that the disposal will not significantly impact MISC’s earnings,” it added.

Overal l , MIDF Research upgraded its call on the stock to ‘ buy’.

The container storage and transport operations of TWL have been discontinued back in November 2006, providing ground for such disposal by MEH, MISC’s unit.