KUALA LUMPUR, Oct 12 (Reuters) - CMKC Group Ltd, a group awarded a $4 billion Republic of Congo railway project with forestry, plantation, mining and oil rights, plans to list in Hong Kong to help fund the project, an official said on Friday.
CMKC, majority controlled by Korean firms that include Korean Railroad Corporation (Korail) and a unit of Korean steelmaker POSCO (005490.KS), plans to list the firm as early as 2009 to fund the project, Erric Chew Weng Leong, a director of Malaysia-based MKRC Group Holdings Bhd, told Reuters.
Funding will be raised at CMKC group level, which will “eventually be listed in a couple of years,” Chew said. “CMKC will be listed in Hong Kong; we’re looking at a three-year timeline.”
CMKC’s forestry and mining subsidiaries, each handling separate concessions, “will be large enough to be listed,” Chew added, likely on London’s stock exchange.
Five Malaysian firms, including MKRC, reported to be a unit of diversified financial group Multi-Purpose Holdings MLPM.KL, have 24 percent in the consortium while about a fifth is owned by the Congo government, Chew said.
The consortium signed the master contract to construct 1,500 km (940 miles) of new railways and renovate an existing 500-km line in the Central African state with government of The Congo Republic in Brazzaville on Thursday.