Despite the challenges brought about by the global pandemic, Syed Mokhtar AlBukhary is looking to unlock value for his infrastructure and utilities group MMC. After delisting the company and taking it private more than two years ago, the tycoon is now in negotiations with U.S.-based infrastructure investor Global Infrastructure Partners to sell up to 49% of MMC Port Holdings. This unit, which operates seven ports around the Straits of Malacca, could potentially be valued at more than 30 billion ringgit, with the deal possibly leading to a listing on the Malaysian stock exchange.
MMC, which is currently AlBukhary’s biggest asset, is not shying away from expansion despite the uncertain economic climate. The company plans to invest 26 billion ringgit over the next five years to upgrade its key port, Tanjung Pelepas in Johor state. This substantial investment is expected to create more than 23,000 jobs in the region, providing a significant boost to the local economy. Additionally, AlBukhary also holds a majority stake in DRB-Hicom, an automotive firm with interests in property and services.
As a result of the economic challenges faced in the past year, AlBukhary saw his fortune decrease by 19% to $1.3 billion. This decline in wealth has not deterred him from pursuing his goal of unlocking value for his businesses and expanding his investments in key sectors. The potential sale of a stake in MMC Port Holdings to Global Infrastructure Partners could provide a significant injection of funds into the company, enabling it to further grow and enhance its operations in the region.
The negotiations with GIP come at a time when the U.S.-based infrastructure investor is in the process of being acquired by BlackRock, a major asset manager. The details of the potential deal between MMC and GIP, as well as the implications of BlackRock’s acquisition of GIP, remain unclear as both companies have not responded to requests for comment. However, if the sale of a stake in MMC Port Holdings goes through, it could have far-reaching implications for the company, potentially leading to a listing on the Malaysian stock exchange and opening up new avenues for growth and investment in the future.
Despite the challenges and uncertainties in the global economy, Syed Mokhtar AlBukhary remains committed to unlocking value for his businesses and investments. The potential sale of a stake in MMC Port Holdings to Global Infrastructure Partners represents a significant opportunity for both companies to enhance their operations and expand their presence in the region. With an ambitious plan to invest 26 billion ringgit in upgrading Tanjung Pelepas port and creating thousands of jobs, MMC is poised for significant growth in the coming years. AlBukhary’s continued focus on expansion and value creation demonstrates his resilience and determination to succeed in the face of adversity.
