Bermaz Auto Berhad has acquired an additional 35 percent stake in Berjaya Auto Alliance Sdn Bhd (“BAASB”) from Berjaya Corporation Berhad (“BCorp”) for a cash consideration of RM4.58 million or at RM1.09 per BAASB share, which was based on the unaudited net assets value per share of BAASB as at April 30 (“Acquisition”).
Following the Acquisition, BAuto’s stake in BAASB has increased from 20 percent to 55 percent and BAASB is now a subsidiary of BAuto. The Acquisition shares were acquired free from all encumbrances together with all rights attaching thereof.
The Acquisition was a result of BCorp divesting its entire 51 percent stake in BAASB to the remaining shareholders of BAASB as part of the company’s objective of streamlining its business activities. The existing subscription cum shareholders’ agreement was also rescinded.
No liabilities, including contingent liabilities and guarantees were assumed and the Acquisition was funded entirely via internally generated funds.
The Acquisition represents an opportunity for BAuto to acquire a strategic controlling stake in BAASB which holds the distributorship of renowned Peugeot marque vehicles in Malaysia and facilitate the consolidation of BAASB’s results into the BAuto Group. There are no material financial effects to BAuto Group and no approvals are required from the shareholders and relevant authorities.
None of the Directors and major shareholders of BAuto and/or persons connected to them has any interest, direct or indirect, in the Acquisition.