Published: Tuesday February 5, 2013 MYT 1:38:00 PM
IJM plans to sell 40% of Kuantan Port Consortium to China's Guangxi for RM310m
By Joseph Chin
KUALA LUMPUR: IJM Corporation Bhd is teaming up with China port operator Guangxi Beibu Gulf International Port Group Co. Ltd to develop Kuantan port and also the industrial hinterland.
IJM's unit Road Builder (M) Holdings Bhd had on Tuesday signed an MoU with Guangxi Beibu Gulf International Port Group Co. Ltd to sell its 40% stake or 48 million shares in Kuantan Port Consortium Sdn Bhd.
IJM Corp said Guangxi would be a strategic investor to acquire the 40% stake where the preliminary valuation is RM310mil. "The proposed disposal shall have no binding effect until the entering into a definitive agreement which is expected to be executed within six months from the date of the MoU," it said.
However, the deal would hinge on the government granting a 60-years concession to Kuantan Port Consortium for the existing Kuantan Port.
Another factor is the grant of a concession to Kuantan Port Consortium for the new deepwater terminal for 60 years.
IJM Corp said it would depend on whether the JV company -- in which Road Builder has a 60% and Guangxi 40% -- is successful in securing 700 acres of industrial land north of Kuantan Port for development.
"Guangxi shall take active steps to introduce investors for a steel mill plant, an aluminium-processing plant and an edible oil processing plant in Kuantan," it said.