Malaysia International Shipping (MISC) has signed a share purchase agreement (SPA) to sell 45% of its equity interest in Centralised Terminals (CTSB) to Dialog Group for RM193m ($45.8m).
The value of the deal includes the purchase consideration for MISC’s shares and repayment of shareholder’s advances and accrued interest to be made by Dialog on behalf of CTSB.
Following completion of the deal, CTSB will no longer be a joint-venture company of MISC.
The deal is also expected to enable MISC to exit from tank terminal business and focus on its energy-related maritime sector.
The agreement is due to be completed within one month of signing the SPA.
MISC president and group CEO Yee Yang Chien said: "It has been a great pleasure working with Dialog over the past decade since 2007 and we wish Dialog the very best in its future endeavours.
"We also wish to take this opportunity to thank and express our appreciation for all the support and cooperation given by the CTSB management team.
"For MISC, this divestment will enable us to unlock the value of our investment in CTSB and take advantage of other opportunities within the energy and maritime industry."
CTSB currently owns 80% share in Langsat Terminal (One) and Langsat Terminal (Two), which are both centralised tankage and tank terminal facilities catering to the oil, gas and petrochemical industries in Johor, Malaysia, reported New Straits Times.