Maybulk diversifies into grocery retail

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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.

Currently, Maybulk’s main revenue stream comes from providing cargo services for charters.

Maybulk said the group is looking for new strategic business opportunities to diversify its revenue streams to mitigate the risk of overreliance on its existing core businesses, which are subject to fluctuations in vessel charter rates. that are beyond the control of the group.

“Following a strategic review of the future direction of the group, Maybulk intends to diversify its existing business to include the grocery sector given, among other things, the favorable outlook for the retail industry. of food products.

“Furthermore, the proposed collaboration allows the group to leverage the capabilities of TMSB and its extensive supplier network to better leverage opportunities available in the retail grocery sector,” Maybulk said in a filing with from Bursa Malaysia.

“The grocery business is expected to contribute 25% or more of the group’s net assets (NA) and/or net profits,” he said.

The group will seek the approval of its shareholders for the proposed diversification at an extraordinary general meeting to be convened.

TMSB is mainly engaged in supermarket chain management business, including general trading of consumer daily necessities and food products.

As of August 9, TMSB operates a chain of 85 supermarkets and grocery stores operating under the “TMG” brand across Malaysia, with the majority of stores located on the east coast of Peninsular Malaysia.

Based on internal feasibility studies, the group intends to invest RM54.38 million to open 15 “TMG Mart” branded supermarkets and 15 “TMG Express” branded convenience stores in the territory during of the next 12 months.

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