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EOX Bhd a Main board listed company
has taken steps to broaden its
product base with its proposed
acquisition of a container operating
company in Thailand.
The company, which is engaged in the
shipping and marine cargo handling
activities, has announced that it
would take up 30 per cent stake in
the Bangpakong Container Terminal in
Thailand.
The facilitate the acquisition EOX
Bhd has through its wholly owned
subsidiary, Whittler Company
Limited, entered into the share
subscription agreement with
Bangpakong Terminal Public Company
Limited (BTP) for the proposed
subscription of 75 million new
ordinary shares for a total
subscription price of RM23 million.
The proposed subscription is subject to the approval of the shareholders
which is expected to meet end of this month.
The principal activity of BTP is in the management and operations of the
Bangpakong Container Terminal in Thailand, in which the company has sole
leasehold proprietorship until 31 December 2029.
The container terminal is located at the mouth of the Bangpakong river some
50 kilometers south-east from the Port of Bangkok.
The niche port with about 200 meters of quay line caters for the
fast-growing industrial regions in Thailand.
The port has a container yard with 2,842 total ground slots and capable of
handling 250,000 TEUs per annum.
The terminal handled 74,600 TEUs in 2001 and nearly 63,000 TEUs for the nine
months of last year.
Container trade at the terminal remained buoyant as the number of
distribution and trading houses are using the terminal's ICD as their
international procurement base.
Trading houses like Nike, Ikea and Toyota have set-up their logistics units
at the terminal and have been using the facility to distribute their various
products to the global market via the terminal.
The terminal is well linked by a 52km elevated highway to Bangkok serving
fast-growing industrial estates of the eastern seaboard of Thailand.
The excellent infrastructure allows the port to shuttle containers swiftly
and efficiently from the terminal to any part of Thailand.
The terminal is also having regular trucking service to and from Lat Krabang
ICD, some 20 km away from the terminal.
Despite the competition from the Port of Bangkok and Laem Chabang Port in
Thailand as well as other ports in the region, EOX confident the port
investment will give good return after June this year.
Currently, Hub Line, the shipping arm of EOX group is the major users of the
facilities of Bangpakong Container Terminal with an average of 16 ship calls
per month to various destinations.
The Sarawak based- shipping line is rapidly establishing itself as one of
the fastest-growing intra-Asian operators and regional feeder specialist has
made a bold move by providing direct links to various North Asia ports.
The proposed subscription will not have any effect on the share capital of
EOX as the Subscription Price will be payable by cash.
The exercise is expected to be completed by 30 June 2003.
Meanwhile, BTC is currently seeking approval for a listing on the Stock
Exchange of Thailand.
At the time of listing, the issued and paid up capital of BTC will be Baht
350 million which will result in WCL's shareholdings in BTC being diluted
from 30 per cent to approximately 21 per cent.
The proposed listing of BTC, if successful, would enable BTC, as a listed
company, to have access to the equity capital market for funds required for
its and continued growth. |
