By NUR HAZIQAH A MALEK / Pic TMR

MMC Corp Bhd has signed separate share purchase agreements (SPAs) to undertake the proposed disposal of its 8% direct equity interest in Red Sea Gateway Terminal Company Ltd (RSGT) for 11.1 million riyal (RM227.6 million).

Based on an exchange filing last Friday, the SPAs were signed with the sovereign wealth fund of Saudi Arabia, Public Investment Fund (PIF) and Cosco Shipping Ports Ltd (CSPL), via its wholly owned subsidiary, Sound Joyce Enterprises Ltd.

“Simultaneously, the other shareholders of RSGT, namely Saudi Industrial Services Company, Xenel Industries Ltd and Saudi Trade and Export Development Co Ltd collectively holding an effective 80% equity interest in RSGT, have also signed separate SPAs with PIF and CSPL to dis- pose of their 32% equity interest in the terminal,” it said.

Following the transactions, PIF and CSPL will hold a combined 40% stakes in RSGT, each holding 20% while MMC via its wholly-owned subsidiary, City Island Holdings Ltd, will continue to hold a 20% equity interest in Red Sea Ports Development Co, also holding 60% stakes in RSGT.

The proposed transactions subjected to the approval of the Saudi Arabian Ports Authority and other customary approvals for finalisation, are expected to complete within the first half of 2021 barring any unforeseen circumstances.