KUALA LUMPUR: MMC CORPORATION BHD [] plans to list its subsidiaries -- Gas Malaysia Sdn Bhd and Malakoff Bhd -- and also its unit Johor Port.
MMC group managing director Datuk Hasni Harun said on Monday, May 16 the first company to be likely listed would be its 51% owned Gas Malaysia.
He said the three companies were ready for listing but it would hinge on factors such as timing and the growth of the respective company.
Hasni said its 51% owned independent power producer Malakoff was going through price discovery process at the moment. It was previously listed and then taken private.
According to Hasni, Malakoff is worth about RM7 billion currently while Gas Malaysia and Johor Port are worth RM5 billion and RM1.5 billion respectively.
However, he was non-committal when asked if the listing would take place this year.
He denied Gas Malaysia had obtained approval to list from the Securities Commission (SC) as reported by a newspaper on Monday.
“It is not true. In order for us to list Gas Malaysia, we have to get approval from our partners namely PETRONAS GAS BHD [] and Tokyo Mitsui Gas Holding. We have yet to get shareholders approval,” he said adding that MMC has yet to submit any application to the SC.
On whether there are discussions with Gas Malaysia’s other partners on the possibility of listing, Hasni said there are discussions at board level but is yet to be brought to the shareholders.
On MMC’s bid for the extension of the 1,000 MW coal-fired generation capacity in Tanjung Bin, Johor, Hasni said the company was informed that its bid is technically and commercially competitive.
He said MMC and Malakoff have its financing in place already should it win the bid.
Hasni also said that MMC would bid for the tunnelling work for the mass rapid transit (MRT) project, which is slated to begin in July, through a Swiss challenge.
He said at least 10 international companies were likely to bid for the tunnelling based on their experience in casting limestone and the diameter of the tunnel.
On its port business, Hasni said Johor Port and Port of Tanjung Pelepas (PTP) constituted 40% of the country’s throughput.
“Based on our growth that we have seen this year, we are quite confident that we will be hitting our maximum capacity of PTP of 8.5 million TEUs soon,” he said, adding that an expansion plan is in order.
He said there are currently 12 berths in PTP and the expansion will include the CONSTRUCTION [] of an additional two berths.
“The land has already been reclaimed. It will be the equipment cost and wharf which we need to construct and will cost us about RM1 billion,” said Hasni.
Malakoff and PTP expected RM150 million and RM170 million in capital expenditure this year.
Written by Sharon Tan of theedgemalaysia.com
