Wednesday February 6, 2013
IJM in tie-up to develop Kuantan port
PETALING JAYA: IJM Corp Bhd is teaming up with China port operator Guangxi Beibu Gulf International Port Group Co Ltd to develop Kuantan port and the industrial hinterland.
The tie-up is via its unit Road Builder (M) Holdings Bhd which has signed a memorandum of understanding (MoU) with Guangxi to sell its 40% stake or 48 million shares in Kuantan Port Consortium Sdn Bhd with Road Builder retaining the remaining 60%.
IJM said in a filing with Bursa Malaysia that 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-year concession to Kuantan Port Consortium for the existing Kuantan Port.
Another factor would be the granting of a concession to Kuantan Port Consortium for the new deepwater terminal for 60 years.
IJM said it would depend on whether the joint venture company would be 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 in the statement.