MMC Corp buys 15.73% stake in NCB Holdings for RM221.98m

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KUALA LUMPUR (Nov 27): Tan Sri Syed Mokhtar's MMC Corp Bhd has acquired a 15.73% ordinary equity stake in port operator NCB Holdings Bhd from MISC Bhd for a total cash consideration of RM221.98 million.

The acquisition confirmed The Edge Financial Daily report on November 25 that MMC Corp was in talks with MISC to buy the latter’s stake, according to sources.

Today, MMC Corp’s wholly-owned subsidiary MMC Ventures Sdn Bhd has entered into an agreement for the sale and purchase of shares with MISC for some 73.99 million shares in NCB, said the group in a filing with Bursa Malaysia.

The acquisition was to make ‘further strategic investment’ for its ports and logistics division, which is a core business of the group, said MMC Corp.

The group said the acquisition would contribute positively to its future earnings.

In a separate announcement, MISC said its disposal of the 15.37% stake to MMC Corp was to exit its non-core and non-energy related businesses and investments.

At midday break, MMC Corp was unchanged at RM2.35 with 988,600 shares traded. MISC gained 3 sen or 0.4% to RM7.48 on volume of 568,500 shares.

NCB fell 9 sen or 3.6% to RM2.41 with 19,500 shares changed hands.