Royal Group firm buys majority holding in PPSP
Royal Group firm buys majority holding in PPSP
Inter Logistics (Cambodia) Co Ltd, a subsidiary of Royal Group of Companies Ltd, said it has acquired 45.09 per cent of publicly-traded Phnom Penh SEZ Plc’s (PPSP) total shares, becoming the industrial park management firm’s largest shareholder.
PPSP is the company behind the Phnom Penh Special Economic Zone (PPSEZ), a 357.3ha industrial park in Kambol district’s Kantaok commune on the outskirts of the capital. It became the fourth publicly listed firm on May 30, 2016.
In a statement on December 21, Kith Meng, chairman of Royal Group and Inter Logistics, heralded the acquisition as “another great milestone” for the development of the group of companies.
He remarked that PPSEZ is one of the first and biggest special economic zones (SEZ) in Cambodia, which he said contributes to the Kingdom’s economic development by bringing in more than 95 manufacturers and service companies from 12 different countries and employing more than 32,000 people – as of last month.
He added that PPSP services clients from Japan, China, Singapore, the US, Malaysia, the Netherlands and Australia in a wide range of industries including automobile parts, garments, food and beverage, plastic products, electronic products and jewellery.
“In this investment, we will work closely with the management team of PPSP to bring more new technology systems, management and business strategies and investors to continue to develop the company and contribute to the society and the economy of the country,” he said.
Inter Logistics said in the statement that SBI Royal Securities Plc was the arranger and broker of the transaction.
It added that PPSP provides its tenants “a range of benefits including exemptions from customs tax, income tax, and other taxes, resulting in reduced costs for infrastructure, utilities, raw material and other resources, which increase export competitiveness and benefits for international trade”.
It noted that PPSP was approved by the government on April 19, 2006 as a multi-product SEZ developer and operator, with its main purpose to develop industrial land for sale or lease.
“The company provides additional services to its tenants within [PPSEZ] including the supply and distribution of treated water, infrastructure maintenance, advisory services, administrative support, waste treatment and other services.
“The acquisition has received approval from the Securities and Exchange Regulator of Cambodia [SERC] on December 17, 2021, refer to the approval letter number 2050/21 SERC,” Inter Logistics said.
CSX CEO Hong Sok Hour told The Post on December 21 that such transactions are common, even if any of the companies involved trade on the stock exchange. However, listing on the exchange provides another layer of convenience, and above all security and affordability, he said.
“They have already agreed, so they have to complete a number of procedures before the operation can be completed successfully. Because this is a large-scale stock transfer, there are procedures to be completed with the CSX in order for the exchange to be completed,” he said.
He explained that Inter Logistics could resell the PPSP shares at any suitable time, as long as the transaction is in accordance with trading rules and procedures.
