(EnergyAsia, May 31 2010, Monday) — MISC Bhd, Malaysia’s leading international maritime corporation, said its subsidiary, MTTI Sdn Bhd, has agreed to acquire a 50% stake in fuel storage firm VTTI BV from global trading firm Vitol for US$735 million.
The two companies will be entering into a shareholders’ agreement upon the deal’s completion.
One of world’s top 10 independent tank terminal operators, VTTI has a network of petroleum products terminals with a total capacity of nearly six million cubic metres now that will be expanded to over seven million cubic metres by 2013. Its major terminals are located in Amsterdam and Rotterdam (Netherlands), Fujairah (UAE), and Port Canaveral (Florida, US).
At an agreement signing ceremony early this month, Amir Hamzah Azizan, MISC president and CEO, said the investment is key to developing the company’s global tank terminal business, and is in line with its goal of becoming the premier global energy-based transportation and logistics services provider.
He said: “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.”
Vitol President and CEO Ian Taylor said: “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.”
MISC and Vitol began cooperating last year when the Malaysian firm and its wholly-owned subsidiary, MISC International Ltd, entered into a joint venture agreement with VTTI and VTTI Tanjung Bin SA. Signed last August 19, the agreement led to the incorporation of a joint venture company, Asia Tank Terminal Ltd (ATTL), to hold all the shares of ATT Tanjung Bin Sdn Bhd (ATB).
ATB was to manage the construction, commissioning and operation of an oil blending terminal with a base capacity of around 841,000 cubic metres at Tanjung Bin in Malaysia’s Johor state, which is due to start operations in 2012. The terminal’s capacity can be expanded to 1.4 million cubic metres.
With the signing of the sale and purchase agreement and the shareholders agreement, the joint venture agreement will be terminated and MISC’s shares in ATTL will be sold off to VTTI Tanjung Bin SA at cost. MISC’s interest in relation to ATB will be held via VTTI.
The other senior executives attending the signing ceremony in Kuala Lumpur included Shamsul Azhar bin Abbas, PETRONAS president and CEO, and chairman of MISC, Kho Hui Meng, president of Vitol Asia Pte Ltd and Rob Nijst, CEO of VTTI.