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Guangxi Beibu to buy 40% stake in Kuantan Port

Guangxi Beibu to buy 40% stake in Kuantan Port
China's Guangxi Beibu Gulf International Port Group will buy a 40% stake in Malaysia's Kuantan Port Consortium from construction group IJM Group for a total of MYR334.42m ($102m), reports said.

Road Builder (M) Holdings, a unit of Malaysia-based IJM, will sell a 38% stake to Guangxi Beibu's unit Beibu Gulf Holding (Hong Kong) for MYR317.7m.

Another IJM unit Essmarine Terminal will sell a 2% equity interest in Kuantan Port Consortium to Guangxi Beibu for MYR16.72m.

The transaction is expected to be completed by September 2014, according to Kuala Lumpur-listed IJM.

“Guangxi would play an active role in attracting foreign direct investment, in particular from China, to invest in the East Coast Corridor, which would contribute positively to the volume of cargo handled by Kuantan Port,” IJM said.

Guangxi Beibu currently operates four ports in southern China, namely Fangchenggang port, Qinzhou port, Tieshan port and Beihai port.

Teh Kean Ming, ceo and managing director of IJM, said at its annual general meeting last month that Kuantan Port would double its capacity to 52m freight weight tonnes per year, with its marine terminal expected to start the construction of a new MYR3bn deepwater terminal by the end of this year.

TAGS: Ports