Citaglobal to buy 12.8% stake in PMC developer for RM40mil Ask ChatGPT
KUALA LUMPUR: Citaglobal Bhd has proposed a RM40mil acquisition of a 12.8% indirect stake in Mutiara Perlis Sdn Bhd, the master developer of the RM27.8bil Perlis Maritime Corridor (PMC).
In a statement, the diversified group said the deal positions Citaglobal as a key player in the port infrastructure and logistics industry, while strengthening its presence within the economic corridor.
The proposed acquisition will be undertaken via the purchase of a 20% stake or 600,000 shares in Manjaran Sdn Bhd for RM40mil. This 20% direct equity interest in Manjaran represents a 12.8% effective interest in Mutiara Perlis.
Citaglobal is acquiring the 20% stake in Manjaran from Dedap Rimbun Sdn Bhd, where it will be fully satisfied via the issuance of 42.11 million new shares in Citaglobal at an issue price of 95 sen per consideration share.
Executive chairman and president Tan Sri Mohamad Norza Zakaria said the announcement marks a deeper involvement for Citaglobal in the PMC, one of Malaysia's key infrastructure, energy, and logistics projects.
'Our involvement and investment in the PMC aligns with our broader vision to emerge as one of Malaysia's leading players in infrastructure development and energy transition.
'In addition, our equity investment enhances our prospects for future EPC contracts related to the PMC, strengthening our portfolio in the engineering and construction sector,' he said.
Citaglobal's investment in PMC strengthens its role in one of the Northern Region's largest infrastructure projects.
In August 2022, its unit Citaglobal Land Sdn Bhd was appointed EPC contractor for Phase 1 of the Perlis Inland Port (PIP), with a contract value of RM373.5mil.
Norza said the deal is timely, with Phase 1 of the PIP recently completed and port operations set to begin soon, potentially boosting the group's earnings.
He added that early-stage equity participation in the PMC allows Citaglobal to benefit from future value appreciation as the corridor's assets mature.
'As the PMC master plan includes energy-related components such as the Perlis Power Hub, which will involve gas-based generation, solar energy, and battery energy storage systems (BESS), this investment also aligns well with Citaglobal's growth strategy in new energy while strengthening its foundation in engineering and construction.
'All in all, we see this as a very strategic and synergistic investment for the success of Citaglobal and look forward to being part of this monumental development of the Perlis Maritime Corridor,' Norza said.
Meanwhile, Mutiara Perlis group executive chairman Datuk Shabaruddin Ibrahim said: 'In today's rapidly evolving port and logistics landscape, the key factors in ensuring port success are digital capabilities, end-to-end service integration, scalability and supply chain resilience. With Citaglobal as our partner, we look forward to constructing a more resilient, intelligent and customer-centric logistics network for Malaysia'
Mutiara Perlis is a joint venture between Mutiara Infra and the Perlis State Government via Menteri Besar Inc Perlis (MBI), with Mutiara Infra holding an 80% stake in Mutiara Perlis and MBI holding the remaining 20%.
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