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The Sun
4 days ago
- Business
- The Sun
Malaysia remains open to foreign stake in strategic assets: Loke
PETALING JAYA: Malaysia has a longstanding policy that allows foreign participation in its strategic assets, Transport Minister Anthony Loke said. Citing MMC Corp Bhd's divestment of its stake in MMC Ports Holdings Bhd to foreign entities, seen as a pragmatic approach to corporate restructuring and foreign investment in the transport sector, he said Malaysia has long allowed foreign stakes in its ports. 'Regarding the concession, our position and policy are very clear – similar to Westports Holdings Bhd and MMC, foreign partners are allowed, but only up to a 49% stake,' Loke told reporters at the opening ceremony of Malaysia Maritime Week 2025 today. However, he emphasised that Malaysian companies must retain at least a 51% stake in any port concession to ensure local control. Loke added that any divestment of shares to foreign entities must be reported to and approved by the Ministry of Transport and the Public Private Partnership Unit. 'This is because it involves their concession.' Loke said the divestment of shares to foreign companies is not a new development. 'For instance, at the Port of Tanjung Pelepas (PTP), a 30% stake has long been held by Mærsk Line,' he noted. He added that the ongoing discussions about MMC Group potentially divesting shares to foreign partners are purely commercial decisions made by the company. 'MMC currently holds concessions for Penang Port, Northport, PTP and several others. These matters fall under the company's commercial discretion,' Loke said. MMC Port Holdings – a wholly owned subsidiary of MMC Corp Bhd, which is controlled by tycoon Tan Sri Syed Mokhtar Albukhary – is planning a major divestment exercise as part of its upcoming initial public offering (IPO). The company, which operates several key ports including PTP, Northport, Penang Port and Johor Port, is expected to sell up to a 30% stake through an offer for sale. According to reports, MMC Ports aims to raise about US$2 billion (RM8.5 billion) from the IPO, which would value the entire group at nearly US$7 billion (RM29.6 billion). In 2024, MMC Ports handled about 18 million TEUs across its major container ports, and it is the largest container port operator in Malaysia. The group also managed non-containerised cargo (bulk and breakbulk), totalling around 36.5 million tonnes in 2024, making it the second-largest non-container operator in Malaysia after Bintulu Port. Further, a 30% port tariff hike set to take effect this month is expected to enhance earnings and support the valuation story ahead of the IPO. Moving on, Loke hopes ongoing negotiations with the United States on potential imposition of a 25% tariff on Malaysia from Aug 1 will help mitigate the impact on the country's maritime industry and ensure it remains competitive. He said the maritime sector is performing well, supported by higher trade volumes at ports operated by MMC Corp and Westports. 'Currently, we are doing well. If you look at our ports, they are performing strongly because volumes have increased,' he said. 'We are awaiting the announcement by Lloyd's List this August that will confirm that Port Klang is among the top 10 busiest ports in the world,' he added. Loke said the government is doing its utmost to leverage all available diplomatic channels to secure a better deal with the US. 'We are using our diplomatic advantages to negotiate a better outcome so that we can hopefully mitigate any negative impact.'
The Star
26-06-2025
- Business
- The Star
MMC Ports to file for biggest IPO since 2012
MMC Ports could seek to raise about US$2bil in a share sale as soon as September. KUALA LUMPUR: MMC Port Holdings Sdn Bhd is pressing ahead with its planned listing in Malaysia, according to people familiar with the matter, in what could be the biggest local initial public offering (IPO) in more than a decade. The port operator, owned by Malaysian tycoon Tan Sri Syed Mokhtar Al-Bukhary, has confidentially filed listing documents with regulators and is awaiting approval to post a draft prospectus, the people said, asking not to be identified because the process is private. MMC Ports could seek to raise about US$2bil in a share sale as soon as September, the people said. The planned listing could value the company at as much as US$7bil, some of the people said. Considerations are ongoing and details including size and timing may change, the people said, adding that MMC Ports could also decide against an IPO. Representatives for MMC Ports and parent MMC Corp Bhd didn't immediately respond to requests seeking comment. Bloomberg News reported in October that MMC Ports was working with financial advisers on an IPO plan. The company runs seven ports along the Straits of Malacca, one of the world's busiest shipping lanes, and is the biggest such operator in Malaysia, according to its website. It also operates three cruise terminals. The potential IPO could be the biggest since plantation group FGV Holdings Bhd raised more than RM10bil or US$2.4bil in 2012. — Bloomberg Trading ideas: TNB, Sports Toto, Cypark, Aeon Credit, HSS, Gas Malaysia, Green Ocean, UEM Sunrise, Destini, Citaglobal, ATA IMS, RHB, Sapura Energy, Ajinomoto, SNS, iCents
