Malaysian utilities and infrastructure group MMC has signed a conditional share sale and purchase agreement to buy a 49% stake in Malaysia's Penang Port for MYR200m ($49.5m) in cash from MMC’s own majority shareholder Seaport Terminal (Johore).

With the deal, MMC reportedly intends to consolidate its port business and register it on the Malaysian stock exchange by the end of next year.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The terms of the deal include the condition that requires Penang Port to sell its loss-making ferry service business, which includes vessels, employees, costs, and liabilities.

"The proposed acquisition is in line with the initiative of the MMC to make further strategic investments in one of MMC's core businesses."

The acquisition is expected to be completed by the first quarter of next year.

Following the completion of the deal, Seaport Terminal will hold a 51.76% ownership stake in Penang Port.

MMC was quoted by Nikkei as saying: "The proposed acquisition is in line with the initiative of the MMC to make further strategic investments in one of MMC's core businesses and to strengthen the MMC's financial performance and position.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

See Also:

Considered as the third largest port by container throughput volume, Penang Port handles over 1.2 million twenty-foot equivalent units (TEU) of containers, which accounts for 5.6% of the total containers in Malaysia.

Currently, the port is carrying out an initiative to make it more competitive and profitable, reported Deal Street Asia.

The initiative includes cutting operating costs, increasing port efficiency, offering more cargo handling services, as well as development of port infrastructure as per the industry demand.

MMC currently operates container port Pelabuhan Tanjung Pelepas located in southern state of Johor and Northport in the central Selangor state in Malaysia.