NCB Holdings Bhd (-ve)
NCB (Fundamental: 2.05/3, Valuation: 0.8/3) closed up 3.5% to a one-year high of RM4.15 last Thursday, after its major shareholder, MMC Corp, announced that it is acquiring KWAP’s 9.08% stake in NCB for RM186.5 million or RM4.37 per share.
Upon completion of the acquisition, MMC will hold 30.13% stake in NCB, up from 21.05%. This came after MMC Corp acquired a 5.3% stake in NCB, last month, from the Port Klang Authority for RM86.2 million or RM3.45 per share.
Sharing similar ports and logistics assets, NCB and MMC are exploring a synergistic collaboration between their ports and logistics business.
MMC owns Johor Port, Penang Port and Port of Tanjung Pelepas in Johor as well as land transport company JP Logistics Sdn Bhd. NCB operates Northport in Port Klang and owns logistics provider Kontena Nasional Bhd.
MMC is 51.8%-controlled by tycoon Syed Mokhtar whereas NCB is 53.4%-owned by PNB.
This article first appeared in The Edge Financial Daily, on July 20, 2015.