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When the parent company trades at a discount to its subsidiary

TheStar Sat, Jun 15, 2019 10:15am - 5 months ago

On June 11, the acquisition of a 30% stake in warehousing and logistics company Tasco Bhd ’s unit Tasco Yusen Gold Cold Sdn Bhd (TYGC) for RM125mil by a Japanese government fund was finally completed.

The Japanese fund is Japan Overseas Infrastructure Investment Corp for Transport and Urban Development’s (JOIN). It is 87%-owned by the Ministry of Finance, Japan.

With the completion of this deal, JOIN now becomes Tasco’s strategic partner for cold chain and convenience retail logistics businesses.

Tasco Yusen has a combined temperature-controlled storage capacity of 37,000 pallet space at the Berjaya Industrial Logistics Centre in Shah Alam and Westports Logistics Centre in Westports.

Nothing quite out of the ordinary at first glance. At the RM125mil price tag that JOIN paid, this implicitly values Tasco’s cold-chain and convenience retail logistics businesses at approximately RM416.67mil.

Here’s the catch though.


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BJCORP 0.240
TASCO 1.160


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