New York-based GIP halts plan for MMC Port stake

New York-based GIP halts plan for MMC Port stake

Global Infrastructure Partners, an investment firm has shelved plans to buy up to 49% of Malaysia’s port operator from a local tycoon, Syed Mokhtar Al-Bukhary.

MMC Port Holdings’ owner, Syed Mokhtar Al-Bukhary, was seeking a valuation of RM15 billion to RM20 billion for the company, which would’ve made it Malaysia’s biggest-ever ports deal. (MMC Port Holdings pic)
PETALING JAYA:
Global Infrastructure Partners (GIP) has shelved plans to buy up to 49% of Malaysia’s biggest port operator from a local tycoon on valuation concerns, said the people with knowledge of the matter.

After completing due diligence on MMC Port Holdings Sdn Bhd, the New York-based investment firm couldn’t reach an agreement on a price for the stake, the people said, asking not to be identified as the information is private.

“MMC Port’s owner, Syed Mokhtar Al-Bukhary, was seeking a valuation of RM15 billion to RM20 billion for the company, which would’ve made it Malaysia’s biggest-ever ports deal,” the people said.

Representatives for GIP and MMC Port didn’t respond to requests for comment.

Malaysia’s The Edge previously reported unidentified sources saying that GIP had been considering buying a stake in MMC Port.

“While GIP has put plans on hold, other bidders for a stake could emerge,” the people said.

Founded in 2006, GIP manages US$112 billion (RM535.15 billion) in assets ranging from energy and transportation to water and waste, its website stated.

Meanwhile, BlackRock Inc had agreed in January to buy GIP for about US$12.5 billion (RM59.72 billion) in a deal expected to close in the third quarter.

MMC Port, part of conglomerate MMC Corp, said it operates seven ports in Malaysia, including in Johor and Penang, adding that it also has cruise ship terminals.

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