MMC Corp Bhd's subsidiary MMC Port Holdings Sdn Bhd has acquired a the remaining 51% stake in Penang Port Sdn Bhd (PPSB), the operator of Malaysia's oldest port.

MMC Port had entered into a conditional agreement with Seaport Terminal (Johore) Sdn Bhd (STJSB), a subsidiary company of Indra Cita Sdn, to acquire the remaining 37.46 million shares in PPSB. The value of the acquisition will be MYR220 million (US$50 million).

As we reported in August, MMC Corp Bhd acquired a 49% stake in PPSB from STJSB for MYR200 million (US$50 million) in cash.

The new deal would give MMC full control of PPSB.

Located in the state of Penang, in the north-west of Peninsula Malaysia, Penang Port is the oldest and longest established port in Malaysia. The port serves as the main gateway for shippers in the northern states of Malaysia and also the southern provinces of Thailand.

This acquisition is in line with the MMC’s initiative to make further strategic investments in one of its core businesses, ports and logistics, and to strengthen its financial performance and position. It would help the group maintain its position as a key player in the ports industry in Malaysia as well as to establish its foothold in PPSB.

PPSB is currently undertaking a transformation programme to turn around the port to be more competitive and profitable. This includes reducing operation cost, increasing port efficiency, providing additional services for cargo handling activities and developing continuously the port infrastructure to meet industry demand.

PPSB’s operations are subject to the terms and conditions under the privatization agreement. Among others, the concession is for an approved period (reportedly ending in 2023).