Syed Mokhtar AlBukhary, a prominent Malaysian tycoon, is seeking to unlock value in his infrastructure and utilities group MMC, which he delisted and took private over two years ago. Reports have indicated that he is in negotiations with U.S.-based infrastructure investor Global Infrastructure Partners (GIP) to sell up to 49% of MMC Port Holdings, which operates seven ports in the Straits of Malacca. The potential deal could value the unit at over 30 billion ringgit ($6.3 billion) and may lead to a listing on the Malaysian stock exchange. Both MMC and GIP have not provided any comments regarding the negotiations.
Despite the discussions about selling a stake in MMC Port Holdings, MMC itself is focusing on expansion plans. The company, which is now AlBukhary’s largest asset, intends to invest 26 billion ringgit over the next five years to upgrade its key port of Tanjung Pelepas in Johor state. This investment is expected to create more than 23,000 jobs, contributing to economic growth and development in the region. Along with MMC, AlBukhary also holds a majority stake in DRB-Hicom, an automotive firm with interests in property and services. His fortune has decreased by 19% to $1.3 billion in the past year.
Syed Mokhtar AlBukhary’s ventures in the infrastructure and automotive sectors align with Malaysia’s strategic focus on developing its transportation and manufacturing industries. By investing in port infrastructure and automotive services, AlBukhary is supporting the country’s economic growth and contributing to job creation. The potential sale of a stake in MMC Port Holdings to GIP could further enhance the value of AlBukhary’s assets and create opportunities for expansion and development in the sector.
The negotiations between AlBukhary and GIP come at a time when the global infrastructure investment landscape is evolving, with U.S. asset manager BlackRock acquiring GIP. This acquisition could have implications for the potential deal between AlBukhary and GIP, as BlackRock’s involvement may bring additional resources and expertise to the table. The collaboration between AlBukhary’s MMC and GIP, under BlackRock’s ownership, could lead to significant growth and innovation in Malaysia’s port industry.
As AlBukhary continues to navigate the challenges and opportunities in the infrastructure and automotive sectors, his strategic vision and investment decisions will play a crucial role in shaping Malaysia’s economic landscape. By pursuing partnerships and expansion plans, he is positioning his companies for long-term success and sustainable growth. The potential listing of MMC Port Holdings on the Malaysian stock exchange, following a deal with GIP, could further boost investor confidence in AlBukhary’s businesses and contribute to the overall prosperity of Malaysia’s economy.
