Tasco snaps up cold storage firm for RM29.9m

PETALING JAYA: Tasco Bhd, which just two weeks ago announced a venture into the cold chain logistics business, continued its buying spree by acquiring a cold storage firm for RM29.93 million.
Tasco is buying Gold Cold Transport Sdn Bhd for RM186 million, marking its entry into the cold chain logistics business.
In a filing with the stock exchange yesterday, Tasco said it had inked a share sale agreement for the acquisition of 2.8 million redeemable convertible preference share or the entire 100% stake in MILS Cold Chain Logistics Sdn Bhd (MCCL) for RM9.93 million, as well as the assumption of loans received by MCCL from Swift Integrated Logistics Sdn Bhd with an outstanding balance of RM20 million.
Besides that, it also entered into a sale and purchase agreement with Swift Integrated Logistics for the acquisition of six pieces of land on Pulau Indah, Klang, Selangor, for RM113.83 million.
MCCL is involved in the business of cold and chill storage services, cold chain logistics solutions and related services to customers. It operates from its warehousing facilities on Pulau Indah with a capacity of 10,500 pallet space in the multiple temperature-controlled storage facility.
Upon completion, Tasco said the acquisition will further scale-up its cold chain logistics capabilities by having a combined cold room storage capacity of 36,100 pallet space.
MCCL for 11 months ended Nov 30, 2016, incurred a net loss of RM61,138 against a net profit of RM1.6 million for the full year of 2015, due to lower revenue from storage and forwarding activities.