Westports Eyes M&As in Asia
Malaysia's Westports Holdings Bhd is on the prowl for suitable merger and acquisition (M&A) target particularly in the Asean region that would be able to chart good growth to the benefit of terminal operators, says a report in the Star.
The firm is pursuing a deal but had yet to find a terminal in the region that could join the group, informed Ruben Emir Gnanalingam, CEO of Westports.
The company, which through its subsidiaries engages in the port development and management of port operations, is already in talks with external parties. Ruben has confirmed that his company is keen, but it wants to pursue the right deal where pricing, valuation and prospects of the terminal are within its expectations.
He said that the South-East Asia was the strongest market for his company, as the countries there are still bullish on the economic outlook. Asean potential is amazing in the next 20 to 30 years. This is where the growth will be, he added.
For Westports, intra-Asia trade lanes commanded nearly half of its throughput last year, far above the key shipping Asia-Europe trade lane that contributed about 23% to its volume in 2014.
On its strength to undertake an M&A, Westports has close to a billion left out of its RM2bil sukuk program that was available for issuance.
According to the financial documents, with the robust volume growth in 2014, the company expects the positive momentum to continue especially with the commencement of 03, and therefore projected 5% to 10% container volume growth for 2015.