Tanco Holdings Bhd is proposing up to RM250 million in financial assistance for its joint venture with Menteri Besar Negeri Sembilan (Incorporated) (MBINS) to support the acquisition of land and development of an industrial park in Port Dickson.
According to a filing with Bursa Malaysia, the proposed funding includes RM88.5 million for land acquisition, RM4.64 million for incidental costs, RM150 million for first-phase development, and RM6.87 million for contingencies.
In October 2024, Tanco announced that its 80 per cent indirect subsidiary, Tanco Land Sdn Bhd (TLSB), had entered into an 80:20 joint venture with MBINS to develop the Port Dickson Free Zone (PDFZ).
The industrial park will be developed on approximately 575 acres of land currently owned by SD Guthrie Bhd, and will feature warehouses, factories, and supporting infrastructure, to be developed in phases.
In June 2025, MBINS entered into an agreement with SD Guthrie to acquire the land for RM88.5 million. Under the arrangement, MBINS will temporarily hold the land on behalf of the joint venture company, PDFZ Sdn Bhd, before transferring ownership upon completion.
TLSB will be primarily responsible for arranging financing for both the land acquisition and project development.
Tanco said the financial assistance will be provided through a combination of shareholder advances and corporate guarantees for bank borrowings, depending on the project’s financing requirements.
The company noted that the funding is intended to avoid delays and ensure the timely completion of the project’s first phase, which is expected to contribute positively to future earnings.
The proposal remains subject to shareholders’ approval at an extraordinary general meeting (EGM).
Subject to approvals, the land acquisition is expected to be completed in the second half of 2026.
On Friday, Tanco shares rose one sen, or 0.6 per cent, to RM1.75, valuing the company at approximately RM10.7 billion.
