MMC Corp buys 51% equity in towage operator KOTUG Asia

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KUALA LUMPUR (Sept 8): MMC Corp Bhd's (MMC) wholly-owned subsidiary, Johor Port Bhd (JPB), had acquired 51% equity in KOTUG Asia Sdn Bhd (KOTUG Asia) for RM5.1 million cash.

In a filing with Bursa Malaysia today, MMC said that JPB buys 5.10 million shares of RM1 each in KOTUG Asia, representing 51% equity in the company. The remaining 49% equity interest in KOTUG Asia is held by KOTUG Malaysia Sdn Bhd.

“The intended principal activity of KOTUG Asia is the provision of tug boats and maritime crafts within Malaysia and other territories,” MMC said.

Currently, KOTUG Asia is a dormant company. It was incorporated in Malaysia on Oct 23, 2014.

“The acquisition is not expected to have any material effect on the earnings, net assets and gearing of MMC Group for the financial year ending Dec 31, 2015,” it added.

The diversified group’s core businesses are under three divisions: port and logistics; energy and utilities; as well as engineering and construction.

MMC share price gained four sen, or 2.35%, at RM1.74, for a market capitalisation of RM5.18 billion.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)