MMC Corp and Suria Capital Holdings in Talks for Equity Stake of Sabah Ports (SPSB)

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In a statement released by MMC Corp, the company is in talks with Suria Capital Holdings to acquire a stake in Sabah Ports (SPSB). Both parties have confirmed the same in separate statements.

This is a landmark move as since 1 September 2004, the management of all port operations has solely been with Suria Capital Holdings.

Eight major ports in the state are managed and operated by Sabah Ports. They are equally divided between the west and east coast. Kota Kinabalu Port, Sapangar Bay Container Port, Sapangar Bay Oil Terminal and Kudat Port – all located on the West Coast of Sabah and Sandakan Port, Tawau Port, Lahad Datu Port and Kunak Port on the East Coast. Sabah Ports is Suria Capital’s main income generator. They acquired 84% of revenue from port operations in 2016. Last year, Sabah Ports registered cargo volume of 33.54 million tonnes, up 21 percent from the year before.

MMC Corp’s spectrum of ports include the Port of Tanjung Pelepas, Johor Port, NCB Holdings Bhd that operates Northport in Port Klang and Penang Port. Sabah Ports could benefit from the link-up with the other ports under the MMC banner, as PTP, Northport, Johor Port and Penang Port are all capable of handling in excess of one million TEUs a year.

The Board of Directors of Sabah Ports, however, is yet to take a firm decision on this.

Image courtesy spsb.com.my