Malaysia's IJM to sell 40% in Kuantan Port to Guangxi Beibu
IJM Corp Bhd plans to sell a 40% stake in its wholly-owned unit Kuantan Port Consortium Sdn Bhd to China-based Guangxi Beibu Gulf International Port Group Co Ltd for an estimated RM310 million, according to press release.
In a statement to Bursa Malaysia today, IJM said its wholly-owned subsidiary Road Builder (M) Holdings Bhd had signed a memorandum of understanding (MOU) with Guangxi to "outline the basic principles" for the disposal of 48 million shares in Kuantan Port.
"A strategic partnership with Guangxi will bring best practices of port management, and its wide network of clienteles will enhance the capacity utilisation of Kuantan Port especially when the port capacity is increased with the development of a NDWT (new deep water terminal).
"In addition, Guangxi will play an active role in attracting foreign direct investments, in particular from China, to invest in the East Coast Corridor, which will contribute positively to the volume of cargoes handled by Kuantan Port," IJM said.
According to IJM, the estimated RM310 million for the 40% stake in Kuantan Port is subject to further assessment by independent valuers appointed by the buyer and seller.
IJM said the planned disposal will be formalised when both parties enter into a definitive agreement within six months from the date of the MOU.