The Malaysian Reserve

MMC’s bid to buy stake in Sabah Ports declined

MMC Corporation Berhad Group Managing Director Datuk Seri Che Khalib Mohamad Noh during the MMC Corporation Bhd EGM in Kuala Lumpur on March 30, 2015. Photo by Hafzi Mohamed.

The group receives a letter from the State Economic Planning Unit to confirm their non-acceptance

By SHAHEERA AZNAM SHAH / Pic By TMR File

MMC Corp Bhd has received an official affirmation from the Sabah State Economic Planning Unit declining the port operator’s bid to buy a 20% stake in Sabah Ports Sdn Bhd (SPSB), a wholly owned subsidiary of Suria Capital Holdings Bhd.

“MMC Corp has received a letter from the State Economic Planning Unit of Sabah to confirm their non-acceptance of MMC Corp’s proposal to acquire a 20% equity in SPSB,” it told Bursa Malaysia yesterday.

The state planning unit controls Suria Capital, which in turn owns SPSB.

The reply from the state government body comes as MMC Corp group MD Datuk Seri Che Khalib Mohamad Noh (picture) told The Malaysian Reserve (TMR) on Monday that the group intends to make a fresh improved bid for SPSB after Suria Capital told the exchange last Friday that it has declined the proposed bid by MMC Port Holdings Sdn Bhd, a wholly owned subsidiary of MMC Corp, for SPSB.

Suria Capital did not specify the reasons behind its decision. Che Khalib told TMR that the group remains keen to pursue the negotiation with a newly improved offer.

“We are revising the terms and conditions that have to be met by both parties.

“We figured out that there were some disproportionate terms with the state government that have to be aligned first before we negotiate a new deal,” he said on Monday.

MMC Corp, through its subsidiary MMC Port Holdings, manages five sea ports, namely Pelabuhan Tanjung Pelepas Sdn Bhd, Johor Port Bhd, Northport (M) Bhd, Penang Port Sdn Bhd and Tanjung Bruas Port Sdn Bhd.