MISC to Divest 50% Shareholding in VTTI

Once the MISC divestment deal is finalised, VTTI will become the sole venture of VIP Terminals.

MISC Berhad (MISC) has announced that it, along with its wholly-owned subsidiary MTTI Sdn. Bhd. (MTTI), has signed an agreement with VIP Terminals Finance B.V. (VIP Terminals) to divest its 50 percent issued share capital of VTTI B.V. (VTTI) for $830 million.

Once the deal is finalised, VTTI will become the sole venture of VIP Terminals, a wholly-owned subsidiary of Vitol Investment Partnership Limited, an investment unit sponsored and managed by the Vitol Group (Vitol).

"For MISC, this divestment will enable us to unlock the value of our investment in VTTI B.V. and take advantage of future opportunities within our core business of energy and petroleum related shipping," said Yee Yang Chien, President and CEO of MISC.

Local media reports that MISC's investment cost in September 2010 for the entire issued and paid-up capital of VTTI was $882.1 million, and the company expects to gain about $9million from the divestment.

“However, the final gain or loss on the disposal may vary, depending on the carrying value of MISC’s investment in VTTI at the completion of the proposed disposal,” added MISC.

Rob Nijst, CEO of VTTI, commenting on the future of the company after the deal is finalised, said, "we are confident that the proposition to our range of customers and our asset footprint will continue to improve and grow."

Ian Taylor, President and CEO of Vitol, also commenting on the outlook for VTTI, said "today VTTI B.V. has total gross storage capacity of 54 million barrels, including assets under construction."

"The terminals have an excellent HSE record and are structured and managed to accommodate the demanding requirements of the energy trading community.”

Earlier this month, ATT Tanjung Bin Sdn Bhd (ATB), a wholly owned subsidiary of VTTI, announced  that it has completed the second phase of the ATB oil terminal expansion in Malaysia.