TCH Marine stake sale not fixed yet, says Freight Management

-A +A

KUALA LUMPUR (July 17): Freight Management Holdings Bhd said it is currently exploring plans to dispose of its 49% interest in Singapore-based TCH Marine Pte Ltd and a pair of tug and barge under a 50:50 joint venture with Scomi Energy Services Bhd but clarified that the terms and conditions have yet to be fixed.

The company made the announcement following a report by The Edge Malaysia Weekly which was published in the July 15-21 issue.

"The company wishes to clarify that it is currently exploring plans to dispose [of] the above interests. However, at this point of time, the terms and conditions have yet to be fixed. This is in line with our objective to exit these loss-making marine-related businesses and focus our resources on our core freight-related activities," said the group in a bourse filing.

It added that nothing has been concluded for now, although it is exploring all available options to dispose of its 49% stake in TCH, which could potentially include a sale to the current 51% shareholder in TCH or to a third-party investor.

Freight Management stressed that it adheres to the corporate governance and corporate disclosure standards at all times and that it will make the appropriate announcement as and when there are material developments on the company's way forward.

In an interview with The Edge, Freight Management group managing director Chew Chong Keat said the group was hoping to either sell its stake in TCH or wait for its managing partner to offer to buy the group's stake.

Chew said the share of losses from TCH has been squeezing the earnings of the freight service provider by RM2 million to RM3 million a year.