Syed Mokhtar in PDZ After Mara Exit?

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 Syed Mokhtar in PDZ After Mara Exit?

Tan Sri Syed Mokhtar Albukhary, a billionaire tycoon with major interest in the ports and logistics business in Malaysia is believed to be eyeing a substantial stake in PDZ Holdings Bhd.We understand from the market that Syed Mokhtar is keen to take a strategic stake in PDZ, for better control of the shipping and logistics business which the company is involved in.

PDZ shares were heavily traded on Thursday (July 9), with its price rising 11.5 sen or 127.78 per cent to 20.5 sen, giving it a market capitalisation of RM181.75 million.The stock rose as high as 23 sen in early morning trade and 590 million shares were traded. 

  

On Wednesday (July 8) a total 1.33 billion shares exchanged hands. On both days it was the most actively traded stock across the bourse.We asked analysts why Syed Mokhtar is interested in PDZ and they think that the billionaire is looking for a new type of business to expand his empire.

  

PDZ is involved in the container liner business. According to its website, it operates six vessels that cover domestic and regional trade between Malaysia, Brunei, Singapore and Myanmar.Looking at its existing business, and its recent win of a RM600 million logistics contract from a large e-commerce platform operator in China, the company would make a good fit for Syed Mokhtar to complete his port and logistics interest.

Low-profile Syed Mokhtar, estimated to worth US$1.2 billion and rated by Forbes as the 13th richest man in Malaysia (Malaysia's 50 Richest 2020) gets the bulk of his wealth from stakes in listed conglomerates MMC Corp Bhd and DRB-HICOM Bhd. MMC's operations span ports, logistics, construction and engineering while DRB-HICOM is an automotive giant that is also into property and education.

Interestingly, the talk on Syed Mokhtar coming in emerged after PDZ's largest shareholder Pelaburan Mara Bhd had disposed of its entire shareholding of 50.62 million shares or a 5.71 per cent stake in the company.In a filing with Bursa Malaysia on July 9, PDZ said the disposal of the shares was done in the open market on July 3.

The selling by Pelaburan Mara did not take the market by surprise. Despite the announcement, the stock rose positively.

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