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KUALA LUMPUR: Malaysian Bulk Carriers Bhd (Maybulk) has entered into a conditional collaboration agreement with Tunas Manja Sdn Bhd (TMSB) to undertake grocery retail business and other grocery retail-related businesses.
Presently, Maybulk’s core income stream is derived from the provision of freight services for charters.
Maybulk said the group has been looking for new strategic business opportunities to diversify its revenue streams to mitigate the risk of overdependence on its existing core businesses which is subject to fluctuations in ship charter rates which are beyond the group’s control.
“Following a strategic review of the group’s future direction, Maybulk intends to diversify its existing business to include the grocery business in view of amongst others, the favourable outlook of the grocery retail industry.
“In addition, the proposed collaboration enables the group to leverage on the capabilities of TMSB and its large network of suppliers to better take advantage of the opportunities available in the grocery retail industry,” Maybulk said in a filing with Bursa Malaysia.
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“The grocery business is anticipated to contribute 25% or more of the net assets (NA) and/or net profits of the group,” it said.
The group will be seeking approval from its shareholders for the proposed diversification at an extraordinary general meeting to be convened.
TMSB is principally involved in the business of management of supermarket chain stores, including general trading of daily necessities and food products to consumers.
As at Aug 9, TMSB operates a chain of 85 supermarkets and grocery stores operating under the “TMG” brand throughout Malaysia, with the majority of the stores located on the East Coast of Peninsular Malaysia.
Based on the internal feasibility studies, the group intends to invest RM54.38mil to open an initial 15 “TMG Mart”-branded supermarkets and 15 “TMG Express”-branded convenience stores in the territory within the next 12 months.
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2023-02-28 00:00:50
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