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Malaysian
Merchant Marine Berhad (MMMB), a
second board shipping company on the
Kuala Lumpur Stock Exchange, has
cancelled the share agreement deal
with Able Shipping Sdn Bhd that
involved the proposed acquisition of
25,000 ordinary shares of RM1.00
each in Mymerine Logistics Sdn Bhd
(formerly known as Able Shipping
Agencies Sdn Bhd) representing 100
per cent equity interest.
In the announcement, MMMB said that
its board directors of decided to
rescind the share sale agreement
with Able Shipping Sdn Bhd.
The
announcement said the decision was
arrived after having conducted a due
diligence audit on the business and
assets of MLSB which would not have
been viable for MMMB to proceed with
the proposed acquisition.
MMMB
posted a pre-tax profit of RM8.7
million on the back of revenue of
RM38.83 million during the financial
period ended August 31, 2001.
Pre-tax
profit level was jumped more than 50
per cent due to efficient cost
structure, prudent financial
management, competitive shipping
practices and injection of three
more vessels into the group said the
chairman of MMMB, Dato Mudzaffar bin
Tungku Mustapha.
“Our
Group was not spared from the
economic downturn and sluggish
international trade affecting the
region. Amidst the negative economic
setting and challenging environment,
we are very confident that our
strong chartering team and
operational networking, efficient
cost structures and prudent
financial management can sustain the
continued good performance of the
Group,” said Dato’ Mudzaffar in
the 2001 MMMB’s Annual Report.
The
company, which is mainly involved in
the transportation of bulk cargo and
petroleum products, has ventured
into ro-ro services by acquiring car
carriers. The company which started
car carrier business early this year
acquired three ro-ro ships namely
MMM Parana, MMM Loire and MMM
Colorado during the financial
period.
The
company expects the implementation
of Asean Free Trade Agreement would
bring about an increase in the
shipment of vehicles within this
region and benefit the group in its
expansion plans into ro-ro trade in
the years ahead.
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