Tuesday 19 Mar 2024
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KUALA LUMPUR: MISC Bhd, the shipping arm of Petroliam Nasional Bhd (Petronas), has called off a RM250 million plan to dispose of its wholly-owned subsidiary MISC Integrated Logistics Sdn Bhd (MILS).

In a filing with Bursa Malaysia yesterday, MISC (fundamental: 1.6; valuation: 1.8) said the proposed disposal had been terminated as the buyer, Golden Age Logistics Sdn Bhd (GAL) was not able to fulfil its obligations for completion as stipulated in the agreement for the sale and purchase of shares dated March 21, 2014 between the two companies.

However, it did not specify which condition was not fulfilled.

The conditions stated in the agreement included approvals from relevant regulatory authorities, letter of consent from MILS’ financiers or lenders, and letter of confirmation from Petronas.

“Accordingly, MILS will remain as a wholly-owned subsidiary of MISC going forward,” MISC said.

GAL is a wholly-owned subsidiary of Utusan Printcorp Sdn Bhd.

MISC’s share price retreated nine sen or 1.16% to close at RM7.70 yesterday, on a trading volume of 1.25 million shares, bringing its market capitalisation to RM34.77 billion.

 

This article first appeared in The Edge Financial Daily, on January 16, 2015.

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