MMC still keen to acquire stake in Sabah Ports
Che Khalib says company is also eyeing palm oil terminal
KUALA LUMPUR: MMC Corp Bhd is still “very interested” to acquire a stake in Sabah Ports Sdn Bhd, and has sent in an appeal to the state government.
Group MD Datuk Seri Che Khalib Mohamad Noh said the company would explain how the group could add value to the ports to the authorities.
“We are still very interested to pursue this. Hopefully the new state government will give us the opportunity,” he said, adding that it was looking to acquire 20% of the company.
“The primary reason for us to move into Sabah is that we see vast potential for expansion in Sabah Ports,” he told reporters after the group’s AGM here yesterday.
On why the deal had been aborted previously, Che Khalib said it was possibly due competition from other bidders.
“We have not given up hope on this. We are also looking at the palm oil terminal – if another party is interested in the container part of the business, we could look at the palm oil terminal,” he said.
Che Khalib said that while pricing could be negotiated, he believed that this was not the priority for the state government.
“I think it is more interested in how we could increase the value of its port activities, and we are confident that we can offer a good value proposition,” he said.
On the group’s plans to list its port assets, Che Khalid said the company was not in a rush to do this.
“Our port business is now our major contributor, and we had initially planned to pursue a listing.
“However, we are not in situation where we desperately need to list – it is more opportunistic than a necessity,” he said.
While listing remained an option, he said it was also exploring smart partnerships.
“We have been getting interest from international investors who want to participate in the ownership of our ports.
“At the end of the day, we will look at which option gives us a better value proposition,” he said.
Che Khalib also revealed that it was pursuing another acquisition in East Malaysia for its port business.
He said the company had approached the EPF and Tabung Haji to pursue the deal.
“The ports business is an area we believe we can expand further, not just in Malaysia but also regionally.”
On the change in the federal government, Che Khalib believed the company would benefit from the new prime minister’s business-friendly policies.
“Among Tun Dr Mahathir Mohamad’s earliest statements was that he wants to increase the cargo movement between Malaysia and China.
“Being a major logistics player in the country, I think we are well positioned to take part in this,” he said.