Petronas plans group in shipping<\/p>\n
KUALA LUMPUR (AP): Malaysian national oil company Petroliam
\nNasional Bhd. (Petronas) has acquired a 29.3 percent stake in
\nMalaysia International Shipping Corp Bhd. (MISC) as part of a
\nplan to create a major shipping group, sources said yesterday.<\/p>\n
Petronas bought the stake from the Pension Trust Fund Group,
\nmaking it the largest shareholder in MISC, the country's biggest
\nshipping company.<\/p>\n
The plan entails making MISC a shipping giant and involves
\nPetronas, along with transport operators Konsortium Perkapalan
\nBhd. and Diperdana Corp. Bhd., AFX-Asia, an AFP-affiliated
\nfinancial news wire, said quoting industry sources.<\/p>\n
\"They have to come up with a structure which will make sense
\nas the initial purchase proposal involved more than two billion
\nringgit (US$740.7 million),\" one of the sources said.<\/p>\n
The sources also said Konsortium would eventually acquire part
\nof the 29.3 percent stake from Petronas, to be covered possibly
\nthrough a share swap which would see Petronas eventually holding
\na stake in either Konsortium or Diperdana.<\/p>\n
Konsortium, the second largest shipping and haulage group
\nafter MISC, had earlier announced its intention to acquire the
\n29.3 percent stake. The group is headed by Premier Mahathir
\nMohamad's son, Mirzan Mahathir.<\/p>\n
\"At the end of it... Mirzan (Mahathir) is a step closer to
\ngetting MISC. But perhaps not in the form that he had initially
\nplanned,\" one of the sources said.<\/p>\n
No details were given on the acquisition price but the block
\nof shares is valued at 2.025 billion ringgit based on the closing
\nprice of MISC stock at 6. 90 ringgit on the local bourse Friday.<\/p>\n
MISC is involved in the transportation of liquefied natural
\ngas (LNG), liner, dry bulk and tanker shipping activities as well
\nas in the land-based haulage logistics business.<\/p>\n
Petronas, on the other hand, is a major user of sea-based
\ntransportation services in its shipment of LNG, petroleum and
\npetroleum-based products.<\/p>",
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