KUALA LUMPUR: MMC Port Holdings Sdn Bhd could attract fresh interest from potential bidders following Global Infrastructure Partners' (GIP) decision to back out of its bid to acquire a stake in the company.

According to reports, quoting people with knowledge of the matter, after completing due diligence on MMC Port, the New York-based investment firm couldn't reach an agreement on a price for the stake.

According to a Reuters report in May 2023, Tan Sri Syed Mokhtar Al-Bukhary, ranked as Malaysia's 11th wealthiest individual by Forbes, was exploring the possibility of bringing in an investor for MMC Port. 

Syed Mokhtar reportedly aimed for a valuation between RM15 billion and RM20 billion for MMC Port, which would have marked Malaysia's largest port deal to date.

MMC Port boasts a portfolio of seven ports in Malaysia, including the Port of Tanjung Pelepas, Johor Port, Northport, Penang Port, Tanjung Bruas Port, SPT Services, and Andaman Port, all strategically located along the Straits of Malacca, a key shipping route.

Additionally, the company operates cruise ship terminals.

Previous local reports hinted at GIP's interest in acquiring a stake in MMC Port, potentially valuing the premier port operator at around RM30 billion.

Founded in 2006, GIP manages assets totaling US$112 billion and holds a diverse portfolio, featuring assets like Britain's Gatwick Airport, the Port of Melbourne, and major offshore wind projects.

Should the acquisition of the 49 per cent stake in MMC Port come to fruition, GIP's investment in Malaysia would contribute to the ongoing surge in mergers and acquisitions within the global infrastructure sector, driven by escalating logistics demand, making the asset class increasingly appealing.

It's worth noting that GIP itself is currently undergoing acquisition by BlackRock Inc. for US$12.5 billion, with the deal expected to close in the third quarter. BlackRock oversees assets totaling US$10 trillion across various markets.

https://www.nst.com.my/business/corporate/2024/04/1038289/gip-halts-plan-buy-stake-mmc-port-potentially-opening-door-new