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- The move marks a concrete step towards realising the 600-hectare industrial park, following an initial joint venture agreement signed in October last year, said Tanco in a bourse filing on Friday.
KUALA LUMPUR (Aug 1): Tanco Holdings Bhd (KL:TANCO) has entered into a supplemental agreement with Menteri Besar Negeri Sembilan (Inc) (MBINS) to formalise the acquisition structure and financing arrangements for the Port Dickson Free Zone (PDFZ).
The move marks a concrete step towards realising the 600-hectare industrial park, following an initial joint venture agreement signed in October last year, said Tanco in a bourse filing on Friday.
Under the revised terms, MBINS has acquired the first 300 acres of the land directly from SD Guthrie Bhd (KL:SDG), formerly known as Sime Darby Plantation Bhd, for RM88.5 million, equivalent to RM6.77 per sq foot.
The land will be held by MBINS on behalf of the joint venture company PDFZ Sdn Bhd, which is jointly owned by Tanco’s indirect subsidiary Tanco Land Sdn Bhd and MBINS.
Upon registration of the land in MBINS’ name, the JV company will commence development of the first phase of the project in accordance with the original joint venture agreement.
MBINS has 12 months from June 24 to secure the landowner’s agreement either to form a second joint venture company with PDFZ Sdn Bhd for the next 300 acres, or to acquire the land directly at the same RM6.77 psf price.
Beyond that, MBINS is expected to use its best efforts to acquire the remaining balance of the 624-hectare site within three years, also at RM6.77 psf, subject to final re-measurement and exclusions for utility corridors.
Under the agreement, Tanco Land will provide shareholder advances to fund the land acquisition and associated costs, subject to corporate and regulatory approvals. MBINS, meanwhile, will facilitate the use of the land as security where required, with indemnities from Tanco Land.
The supplemental agreement clarifies that all payments for the land acquisition, including the purchase price, stamp duties and legal fees, will ultimately be borne by the JV company.
The PDFZ is set to complement Tanco’s proposed smart AI container port in Negeri Sembilan, which has already received approval from the Malaysian Marine Department.
The port, planned on a 194-hectare site owned by Tanco, will feature a 1.8km jetty, a terminal and a container handling area spanning 809,300 sq metres.
Together, the two projects are positioned to strengthen Tanco’s footprint in the state and enhance its role in logistics and industrial development, the group said.
Shares in Tanco closed up 0.5 sen or 0.6% to 84 sen on Friday, giving the company a market capitalisation of RM4.62 billion.
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