- Tasco is venturing into the cold chain logistics business through the acquisition of Gold Cold Transport (GCT) for RM186.1 million cash.
- GCT is mainly involved in the business of transportation, cold room storage facilities, repackaging and value added facilities. It currently operates from its warehousing facility in Shah Alam with a storage capacity of about 25,600 pallets, and has developed into a full-fledged chilled and frozen food transporter.
- The initial deposit for the proposed acquisition of about RM3.7 million was paid via internally generated funds of Tasco, while the remaining purchase consideration is expected to be funded via borrowings or advances from Yusen Logistics.
Significance: The proposed acquisition would allow Tasco to enter the cold chain logistics business in a significant way with its ready capabilities to cater to its multinational customers’ needs and also to serve a wide range of industries including the food, pharmaceuticals, chemicals, electronics and other segments.