Singapore port in advanced talks for Lim family’s terminal stake

SINGAPORE: Singapore’s state-backed operator Jurong Port Pte is in advanced talks to buy a stake in a petroleum storage hub from the family behind collapsed oil trader Hin Leong Trading Pte, according to sources.

The deal is for the roughly 40% stake in Universal Terminal held by the Lim family, the sources said.

The sale would still need to win support from Hin Leong’s creditors, a source said.

It is unclear if other bidders who were previously exploring their own deals are still challenging Jurong Port for the stake.

If the sale goes through, it could help monetise one of the biggest assets held by the Lim family, which is grappling with the fallout that’s hit Hin Leong amid allegations of fraud.

The former heavyweight in global marine fuel trading owes US$3.5bil to more than 20 banks in one of the biggest commodities scandals in decades, while some creditors and court-appointed managers have taken legal action against the family to recover the money.A Lim family representative didn’t respond to a request for comment.

Universal Terminal comprises the bulk of the Lims’ business assets, which also include the trading house and a fleet of vessels.

A Jurong Port spokesperson also declined to comment.

The storage hub counts PetroChina Co and Macquarie Asia Infrastructure Fund as its other shareholders.

A spokesperson from PetroChina International (Singapore) Pte said the company is unable to comment on this issue.

A Macquarie spokesperson also declined to comment.Universal Terminal started operations on Singapore’s Jurong Island in 2008, and its facilities, which include 78 storage tanks and 15 jetties, offer 2.33 million cubic meters of storage capacity, according to its website.

Universal Terminal was developed at a cost of S$750mil (US$562mil), making it one of the largest independent petroleum-products storage facilities in Asia-Pacific.

Singapore’s Jurong Port operates ports and terminals handling cement, steel, containers and fuel in the city-state.

The company also has overseas ventures in China and Indonesia. — Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Business News

GLOBAL ECONOMY-Resilient factories battling with delays, rising costs
Singapore's Wilmar International targets US$605 mln Indian IPO for Adani Wilmar
Oil falls over 3% on concerns over demand and OPEC supply boost
US manufacturing growth cooling; bottlenecks starting to abate
GLOBAL MARKETS-Stocks reverse to red
Malaysia PMI edges up
HSBC steps up dividend plans, eyes buybacks as outlook brightens
Jadestone makes debut in Malaysian upstream sector
Maybank Indonesia H1 net profit at RM150mil
OCR Group to launch RM750mil property project

Stories You'll Enjoy