MISC to divest integrated logistics unit for $63.5m
The Malaysian shipping conglomerate has entered into an agreement to sell its entire stake in the wholly-owned subsidiary MISC Integrated Logistics Sdn Bhd to Swift Haulage Sdn Bhd.
As part of the deal, Swift will also take on approximately RM 66.8 million in shareholder loan debt owed by MILS to the parent MISC, as well as other receivables due from MILS in the amount of RM 34 million.
“Including the repayment of the shareholders loan and other receivables due from MILS to MISC, the total proceeds from the proposed disposal are estimated to be up to RM358mil,” the company said in the Bursa Malaysia filing.
“The proposed disposal is not subject to the approval of shareholders of MISC and upon completion, MILS will cease to be a subsidiary of MISC,” it added.
MILS and its subsidiaries provide integrated logistics services, including freight forwarding, transportation, dry and cold warehousing, repair and storage of containers, and other value-added services.
Primary focus areas for SWIFT include the provision of integrated logistics services, which include container haulage, forwarding, freighting, specialized warehouse services, consolidation of less-than-container load cargo to East Malaysia, container depot services, the sale, maintenance and repair of commercial vehicles, and general insurance throughout Malaysia.
The transaction is conditional upon the approvals of the respective board of directors of MISC and SWIFT, but not the shareholders of MISC, and "all waivers, consents, notifications to or approvals of the relevant regulatory authorities in Malaysia or elsewhere which are required, if necessary, having been given to or obtained by the relevant party," the filing said.
MSC Berhard posted a profit of RM 571 million (U.S. $141.01 million) for the first quarter of 2016, up 17.4 percent from RM 486.31 million in the first quarter of 2015, according to the company's most recent unaudited financial statements.