MISC plans to sell entire stake in MILS for RM250m cash

PETALING JAYA: MISC Bhd plans to dispose of its entire equity interest in MISC Integrated Logistics Sdn Bhd (MILS) to Golden Age Logistics Sdn Bhd (GAL), a wholly-owned subsidiary of Utusan Printcorp Sdn Bhd for RM250 million cash.
In a filing to the exchange on Friday, the shipping firm said it has entered into a sale and purchase agreement with GAL to dispose of the entire interest held by MISC in MILS, comprising 20 million issued and paid-up ordinary shares of RM1 each and 332.8 million issued and paid-up redeemable convertible preference shares at RM1 each.
MISC said the proposed disposal is in line with its initiative to divest its non-core integrated logistics business, unlock the value of its investments in MILS and to strengthen the financial position of MISC and its subsidiaries.
It said this was to focus on its core business in energy and petroleum related shipping as the operating conditions of the shipping industry enters a new cycle and recovers in the coming years.
Upon the completion of the SPA, it said MILS will cease to be a subsidiary of MISC.
The principal activity of MILS is in the provision of project logistics and supply chain management, which includes freight management, forwarding, transportation, dry and cold warehousing and other value-added activities to meet local, regional and global customer's demand.