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MMC plans to focus more on ports business

MMC plans to focus more on ports business
Malaysian ports to power conglomerate MMC Corp is set to focus more on the ports space and potentially list the division as a separate entity, local reports said.

“Ports will be the biggest contributor to our profit moving forward. As it is, it should be able to contribute as high as 50% of our revenue in 2016. I think developments in the ports space are going to be very interesting,” group md Che Khalib Mohamad Noh was quoted as saying after the company's AGM.

He said MMC Corp may consider further acquisitions in the port space after its successful purchase of NCB and added that spinning off of its ports division is something that the company “should look at.”

Che Khalib noted, however, that there was nothing immediately on the table, although it was something the company was exploring.

“No (acquisitions) for the time being, but we are looking at other ports. We have also been looking but at the moment, we have not identified a single one yet (to acquire),” Che Khalib said.

“We are exploring locally. We have been looking at overseas ports as well, but have not identified any as well,” he added.

Moving forward, Che Khalib said ports would be one of the main contributors to its revenue, expecting it to contribute at least half of its topline figures.

MMC Corp is also looking at industrial land development for the second prong of its expansion plans. Che Khalib cited its 5,000 acre land bank at Senai City and 12,000 acres at Tanjung Bin as the focus of its future efforts.

He did not disclose figures for allocated capital expenditure but said this would not be a big amount and noted that its ports segment already had available capex on hand. The group also got a boost from an exceptional gain of MYR1.3bn ($320.5m) from the listing of Malakoff Corp in 2015.