GIP said to halt plan to buy stake in Malaysian ports operator

GLOBAL Infrastructure Partners (GIP) has shelved plans to buy up to 49 per cent of Malaysia’s biggest port operator from a local tycoon on valuation concerns, according to people with knowledge of the matter.

After completing due diligence on MMC Port Holdings, the New York-based investment firm could not reach an agreement on a price for the stake, the people said, asking not to be identified as the information is private.

MMC Port’s owner, Syed Mokhtar Al-Bukhary, was seeking a valuation of RM15 billion (S$4.3 billion) to RM20 billion for the company, which would have made it Malaysia’s biggest-ever ports deal, the people said.

Representatives for GIP and MMC Port didn’t respond to requests for comment.

Malaysia’s The Edge previously reported unidentified sources saying that GIP had been considering buying a stake in MMC Port.

While GIP has put plans on hold, other bidders for a stake could emerge, the people said.

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Founded in 2006, GIP manages US$112 billion in assets ranging from energy and transportation to water and waste, its website shows. BlackRock agreed in January to buy GIP for about US$12.5 billion in a deal expected to close in the third quarter.

MMC Port, part of conglomerate MMC, operates seven ports in Malaysia, including in Johor and Penang, according to the company’s website. It also has cruise ship terminals. BLOOMBERG