Tasco buys land owner in Port Klang for RM15.71 million

PETALING JAYA: Tasco Bhd is acquiring the entire equity interest in Meriah Selalu Sdn Bhd (MSSB) for an indicative cash consideration of RM15.71 million, subject to a maximum purchase consideration of RM16 million.
In a filing with Bursa Malaysia, Tasco said it had entered into a share sale agreement (SSA) with NYK Line Holdings (Malaysia) Sdn Bhd, a wholly-owned subsidiary of Nippon Yusen Kabushiki Kaisha (NYKK) for the acquisition.
MSSB is principally engaged in operating a container depot and providing services of storing, handling, cleaning and repairing of containers. It also owns a 2.41ha leasehold land with a single-story site building in Port Klang, which is being used as a container depot.
The land's market value is RM16 million as appraised by CCO & Associates based on a valuation report dated Oct 3, 2017. The property fetches an annual rent of RM24,792.
The property is located adjacent to an existing warehouse owned and operated by Tasco. Due to the close proximity, Tasco said it may use it to complement its existing warehousing operations and to cater for additional future demand, should the need arise.
The two parties have agreed that NYK Line will continue to have actual site possession of the property and will rent the property with the leasing of all equipment and machineries as well as the secondment of all existing manpower of MSSB on a month-to-month basis.
The monthly charges and fees payable by NYK Line to Tasco will be RM235,000 only.
Tasco expects to fund the acquisition via borrowings and/or internally generated funds. The acquisition is expected to completed by first quarter of 2018.
Tasco's share price rose 2.17% or 5 sen to close at RM2.35 on Friday with a total of 21,900 shares traded, giving it a market capitalisation of RM470 million.