MMC Corp sells stake in Jeddah terminal operator

KUALA LUMPUR (Bernama) -- MMC Corporation Bhd, which holds an effective 20% equity interest in Red Sea Gateway Terminal Company Ltd (RSGT), is selling its 8% direct equity interest in the Jeddah-based container terminal operator for 211.1 million riyals (RM227.6 million).

The company said it had signed separate agreements with Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) and COSCO Shipping Ports Ltd to undertake the proposed disposal, which is subject to the approval of the Saudi Arabian Ports Authority (Mawani) as well as other customary approvals.

Simultaneously, the other shareholders of RSGT -- Saudi Industrial Services Company, Xenel Industries Ltd and Saudi Trade and Export Development Company Ltd -- which collectively hold an effective 80% equity interest in RSGT, also signed agreements with PIF and COSCO to dispose of their 32% equity interest in RSGT.

On completion of the proposed transactions, PIF and COSCO will hold a combined 40% equity interest (20% each) in RSGT while MMC’s wholly-owned unit City Island Holdings Ltd will continue to hold a 20% stake in Red Sea Ports Development Company, which in turn holds 60% equity interest in RSGT.

Barring any unforeseen circumstances, the proposed transactions were expected to be completed in the first half of 2021, MMC said.

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