By Jose Barrock
Businessman Syed Mokhtar Albukhary’s plan to take over Penang Port Sdn Bhd is close to conclusion, while his talks with Permodalan Nasional Bhd (PNB) to buy a controlling block in NCB Holdings Bhd, which wholly owns Northport in Port Klang, are still on-going, industry sources say.
“With Penang Port, it’s only one or two clauses left to be negotiated… with NCB it’s still on-going at the shareholder level,” a source close to the tycoon tells KiniBiz.
While Penang Port is more or less in the bag, with an announcement likely after the general elections, NCB is a little trickier, as it is listed company.
NCB officials when contacted declined to comment on Syed Mokhtar’s entry, as they were unaware of what was going on. This is likely to be because talks are at the shareholder level.
About a month ago, a Syed Mokhtar aide had denied any interest in NCB.
“It is at a very, very high level,” the source explains.
PNB via its various funds has about 49 percent equity interest in NCB. NCB’s main assets are its wholly owned unit Northport (M) Bhd, which operates a container terminal in Port Klang and Kontena Nasional Sdn Bhd, one of the largest haulage companies in the country.
Interestingly enough NCB’s second largest shareholder is national carrier MISC Bhd which has 15.73 percent equity interest in the port operator. MISC had hived of its container shipping operations, and hence has no reason to have any shareholding in NCB.
MISC’s management however have come on record last year, to say that MISC is holding the stake in NCB for investment purposes.
It is not clear if Syed Mokhtar is eyeing MISC’s block in NCB, and will take management control of the port operator with the 15.73 percent.
At its close of RM4.52, NCB had a market capitalisation of about RM2.12 billion, meaning PNB’s block would have a market value of about RM1 billion.
As at end December last year NCB’s net asset per share was RM3.10. For the year ended December 2012, NCB posted a net profit of RM168.30 million on the back of RM992.81 million in sales. Earnings per share for the year in review stood at 35.8 sen.
As at end December last year, NCB had deposits with financial institutions amounting to RM295.53 million. On the other side of the balance sheet the company had long-term borrowings of RM34.28 million and short-term debt commitments amounting to RM19.37 million. NCB’s shareholders funds as at end December was RM1.46 billion.
Syed Mokhtar had started talks to buy Penang Port a few years ago, but had hit choppy seas when another bid by businessmen Siew Ka Wei and Mohamed Al Amin Abdul Majid, partnering companies under the China Shipping (Group) Co Ltd seemed more palatable to the opposition-led Penang state government.
The vehicle of Siew Ka Wei and Mohamed Al Amin was Oriental Pearl Harbour Sdn Bhd. Despite the prowess of both the businessmen, Syed Mokhtar is understood to have been favoured.
At one time both Sime Darby Bhd and Konsortium Logistik Bhd were also tipped to throw their hat into the ring, but both parties backed out.
Syed Mokhtar
“You have to face facts, there is no other party more qualified to take over Penang Port than Syed Mokhtar…he has the expertise,” a port official said.
Syed Mokhtar already controls Johor Port Bhd in Pasir Gudang Johor and 70 percent of Port of Tanjung Pelepas Sdn Bhd (PTP), via his flagship vehicle MMC Corp Bhd. He controls 51.76 percent of MMC via Seaport Terminal (Johore) Sd Bhd.
In PTP his partner and 30 percent shareholder is AP Moller Maersk, the Danish container shipping giants and terminal operators.
PNB is the second largest shareholder in MMC with about 25 percent equity interest, held via its various funds.
Penang Port meanwhile is wholly owned by the Minister of Finance, which means it is under the Federal Government.
A check on the Companies Commission of Malaysia reveals that Penang Port as at end 20111, had non-cuurrent assets valued at RM1.77 billion, and current assets of RM123.06 million. The company had long term liabilities of RM1.16 billion and short term debts of RM253.8 million.
For the year ended December 2011, Penang Port registered a profit after tax of RM15.63 million from RM328.08 million in revenue. Penang Port is not very efficiently run, and could rake in much more in profits if well managed.
Other than Penang Port and NCB Syed Mokhtar is also doing a due diligence on train operator Keretapi Tanah Melayu or KTM, and is said to have put a proposal in to take over Malaysia Airlines, with the Government subsidising jet fuel for a 60 year tenure.
The tycoon’s flagship MMC closed on Friday at RM2.54, with a market capitalisation of RM7.73 billion.
However all these grand designs are only likely to be concluded after the general elections, and if the ruling Barisan Nasional coalition can convincingly win.
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