Tasco ventures into cold chain logistics via acquisition of Gold Cold Transport

PETALING JAYA: Tasco Bhd yesterday announced plans to buy over one of the largest cold chain logistics players in the country, Gold Cold Transport Sdn Bhd (GCT), for RM186.09 million cash.

The price consideration however is subject to adjustments following an audit on the amount of debt and cash that GCT holds. Any shortfall will be topped up to the maximum of RM188 million, while any excess be deducted from the sum.

Tasco’s shares were suspended for an hour pending the announcement yesterday. The stock closed 3 sen or 1.8% lower, to RM1.60 with some 124,000 shares traded.

GCT group is principally involved in the business of transportation, cold room storage facilities, repackaging and value added facilities. It currently operates from its warehousing facilities in Shah Alam with a total storage capacity of 25,600 pallets and have developed into a fullfledged chilled and frozen food transporter. GCT is one of the largest cold chain logistics players in Malaysia in terms of storage capacity size.

Tasco funded the RM3.72 million deposit for the deal via internally generated funds, while the balance is to be funded via borrowings and/or via advances from Yusen Logistics Co Ltd, the holding company of Tasco.

Tasco and its subsidiaries is a total logistics solutions provider involved in the provision of logistics services covering air, sea and land transportation. Tasco group also provides warehousing services and serves as a one-stop logistics centre to handle domestic and international shipments for its customers.

Tasco told Bursa Malaysia in its filing that the venture into the niche area of cold chain logistics is a natural step forward, given its existing involvement in traditional ambient warehousing as well as vast experience in the fast-moving consumer goods and retail industries.

GCT group owns a sizeable fleet of 174 reefer trucks and operates cold room warehouses with a storage capacity of 25,600 pallets.

“The proposed GCT acquisition is a concerted effort by Tasco to enter the cold chain logistics business in a significant way with its ready capabilities to cater its multi-national customers’ needs and also to serve a wide base of industries, namely the food, pharmaceuticals, chemicals, electronics and other segments,” Tasco said in the stock exchange filing.