Tue 18 May 2010, 15:32 GMT

MISC acquires 50 percent of VTTI


Shipping line says deal is 'milestone' towards becoming a leading energy-based transportation and logistics services provider.



Leading international shipping line, MISC Berhad, has signed a Sale and Purchase Agreement with the Vitol Group for a 50 percent stake in VTTI B.V., a wholly-owned subsidiary of Vitol, for US$735 million, subject to price adjustment.

The signing of the Sale and Purchase Agreement took place at the Mandarin Oriental Hotel, Kuala Lumpur. Signing on behalf of MISC was Amir Hamzah Azizan, President/Chief Executive Officer of MISC, whilst Vitol was represented by its President & CEO, Ian Taylor.

Also present at the signing was YBhg. Dato’ Shamsul Azhar bin Abbas, President/CEO of PETRONAS and Chairman of MISC, YBhg. Dato’ Kho Hui Meng, President of Vitol Asia Pte Ltd., and Rob Nijst, CEO of VTTI.

VTTI owns and operates a network of petroleum product terminals with a gross combined capacity of nearly 6 million cubic metres, which is set to expand to more than 7 million cubic metres by 2013.

With interests spanning over 11 countries and 5 continents, VTTI is one of the top ten independent tank terminal operators in the world. Major terminals are located in Amsterdam, Rotterdam, Fujairah and Port Canaveral.

Amir Hamzah Azizan said the deal was a significant milestone in the development of MISC in moving towards becoming the premier global energy-based transportation and logistics services provider. The acquisition of 50% interest in VTTI was said to be a key element in developing the company’s global tank terminal business, in line with its strategy to expand its service offerings across the value chain.

“The pooling of resources and expertise resulting from this transaction will enhance MISC’s capability to better meet the needs and demands of our customers, by providing them with integrated services in the form of logistics support, together with our core shipping operation,” said En. Amir.

Speaking at the ceremony, Ian Taylor said “Today heralds a new era of growth for VTTI. With the joint backing of the Vitol Group and MISC, we can accelerate the development of VTTI into a world class storage and terminal company. MISC was already a close business partner for Vitol and this agreement makes our partnership stronger, for the long term.”

The signing sees MISC and Vitol build on their partnership in the tank terminal industry, a partnership that started in 2009 when MISC and its wholly owned subsidiary, MISC International (L) Limited entered into a Joint Venture Agreement (JVA) with VTTI and VTTI Tanjung Bin S.A.

The JVA, signed on 19 August 2009, saw the incorporation of a joint venture company, Asia Tank Terminal Limited (ATTL), to hold 100% shares of ATT Tanjung Bin Sdn Bhd (ATB) and through ATB, manage the construction, commissioning and operation of an oil blending terminal with a base capacity of approximately 841,000 cubic metres at Tanjung Bin, Johor, Malaysia, which is scheduled to commence operations in 2012.

The oil blending terminal has available land area to increase its total capacity to approximately 1.4 million cubic metres.

With the signing of the Sale and Purchase Agreement and the Shareholders Agreement, the JVA will be terminated and MISC’s shares in ATTL will be disposed to VTTI Tanjung Bin S.A at cost, Vitol said. MISC’s interest in relation to ATB will be held via VTTI.


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