PETALING JAYA: Tasco Bhd’s unit has proposed to acquire a 50% stake in Hypercold Logistics Sdn Bhd for RM10.55mil cash.
Tasco said the proposed transaction by its 70%-owned subsidiary Tasco Yusen Gold Cold Sdn Bhd (TYGC) would enable it to establish a cold chain logistics presence in East Malaysia.
This would complement TYGC’s existing infrastructure in Peninsular Malaysia, it said in a filing with Bursa Malaysia.
Hypercold is involved in the provision of cold chain-related logistics, warehouse storage and transportation of goods. Its cold chain warehouse is in Kota Kinabalu, Sabah.
The deal would see TYGC partnering with Swift Integrated Logistics Sdn Bhd (SILSB), which would take up the remaining 50% stake in Hypercold for the same sum.
It said the proposed acquisition was expected to be completed by the second quarter of 2021.
Tasco said the company, through TYGC, had established itself as a prominent cold chain logistics provider in Peninsular Malaysia. However, it had no cold chain logistics presence in Sabah or Sarawak.
“By undertaking the proposed acquisition, it will complement TYGC’s existing infrastructure to expand its cold chain logistics services offering to Sabah and Sarawak, ” it said.
It added that the joint acquisition with SILSB would ensure higher take-up rate of Hypercold’s cold chain warehouse and logistics infrastructure, as TYGC would be able to leverage on the wide customer base of SILSB in Sabah and Sarawak.
“Hypercold is a strategic fit to TYGC due to its operational track record of about 10 years of servicing the major players in the food and beverage industry in Sabah, ” it added.
According to Tasco, Hypercold currently has the largest cold chain warehouse capacity of 3,000 pallet space, as well as eight temperature-controlled trucks in Sabah.
Tasco said it expected demand for cold chain logistics to increase in tandem with the rise in disposable income of the population in Sabah and Sarawak, whereby consumers would have greater demand for fresh and hygienic food.
This, in turn, would drive the demand for end-to-end cold chain logistics services.