M&G buys 50% of marine firm for RM1m

PETALING JAYA: Marine & General Bhd (M&G) is acquiring a 50% equity interest in TKH Marine (L) Ltd for US$277,000 (RM1.09 million) cash.
A subscription agreement was entered between M&G’s wholly owned subsidiary Jasa Merin (Labuan) PLC (JML), TKH Marine and Teng Keng Han.
Subsequent to this initial subscription, JML and Teng will each subscribe for additional shares in TKH Marine as may be agreed between the two parties to raise an additional US$1.94 million.
M&G said in a stock exchange filing that the funds raised from the two subscription exercises will facilitate TKH Marine’s acquisition of a product tanker, which will subsequently be added to JML’s fleet of tankers and further enhance capacity and their ability to compete in the downstream marine logistics business.
The initial and subsequent subscription sum will be funded through internal funds generated from the disposal of Sistem Lingkaran-Lebuhraya Kajang Sdn Bhd, which was completed on April 28, 2017.
“It is anticipated that the vessel to be acquired under the subscription agreement will contribute positively to group’s future earnings once deployed,” M&G said.
M&G shares closed down 8.82% at 15.5 sen today with 567,400 shares traded.