Tasco executive chairman Lee Check Poh, who spoke to reporters after the EGM, projects the company to generate some RM110mil in revenue contribution from the cold chain segment in the current financial year.
KUALA LUMPUR: Tasco Bhd
is expanding its operations with the proposed purchase of land in Pulau Indah, Selangor and a stake in MILS Cold Chain Logistics Sdn Bhd (MCCL) for nearly RM143mil.
The logistics company said on Tuesday it was buying six parcels of land measuring 39.52 acres in Pulau Indah and also the buildings from Swift Integrated Logistics Sdn Bhd (SIL) for a cash consideration of RM113.83mil.
Tasco said its existing facilities were operating at near full capacity. It added there was greater demand for warehouse space and transportation services than it was able to fulfil.
“The proposed properties acquisition allows Tasco to gain a sizeable landbank with close proximity to the busiest container port in Malaysia, which is Port Klang,” it said, adding they were within Westport’s free zone.
Tasco also said it was buying a stake in MCCL from the sole shareholder Swift Integrated Logistics Sdn Bhd (formerly known as MISC Integrated Logistics Sdn Bhd) for RM9.92mil cash consideration and assumption of loans received by MCCL from SILS with an outstanding balance of RM20mil.
It said the proposed share purchase would provide Tasco with access to a temperature-controlled storage facility with a capacity of 10,500 pallet space.
“This will further scale-up Tasco Group’s cold chain logistics capabilities after the completion of the proposed acquisition of the entire equity interest in Gold Cold Transport Sdn Bhd (GCT).
“Combining the existing capacity of MCCL and GCT, TASCO would eventually have a combined cold room storage capacity of 36,100 pallet space,” it said, adding the purchase of the land would enable it to expand its ambient warehousing and cold room facilities.
Tasco said MCCL’s core businesses were cold and chill storage services, cold chain logistics solutions and related services to customers.
MCCL operates from its warehouses in Pulau Indah with a capacity of 10,500 pallet space in the multiple temperature-controlled storage facility.
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