MISC sells stake in VTTI

It is disposing 50% in unit to Netherlands-based VIP Terminals

PETALING JAYA: Shipping giant MISC Bhd is selling its 50% stake in VTTI B.V. to Netherlands-based VIP Terminals Finance B.V. for US$830mil (RM3.46bil) cash.

MISC said in a statement that its investment cost for the entire issued and paid-up capital of VTTI in September 2010 was US$882.1mil.

It expects a gain of about US$9mil from the sale.

“However, the final gain or loss on the disposal may vary, depending on the carrying value of MISC’s investment in VTTI at the completion of the proposed disposal,” it said, adding that the divestment would not have any material effect on its earnings and gearing for the financial year ending Dec 31, 2015.

MISC president and CEO Yee Yang Chien said: “It has been a great pleasure working with Vitol over the past five years.

“The divestment would enable us to unlock the value of our investment in VTTI and take advantage of future opportunities within our core business of energy and petroleum-related shipping.”

Going forward, the oil and gas shipping firm would strengthen its core business and undertake opportunistic acquisitions or investments for future growth.

Vitol Investment Partnership is an investment vehicle sponsored and managed by the Vitol Group.

Global energy storage provider VTTI, which was founded in 2006, has a total gross storage capacity of 54 million barrels, including assets under construction.

VTTI’s audited net profit for the financial year ended Dec 31, 2014 was US$41.8mil while its net assets stood at US$1.3bil.