Hap Seng gets ‘fine price’ for stake in Merc dealer

KUALA LUMPUR: Minority shareholders of Hap Seng Consolidated Bhd may not have much to complain over the pricing of the sale of a 35% stake in the group’s Mercedes-Benz dealership under Hap Seng Star Sdn Bhd to the private company belonging to Hap Seng’s largest shareholder.

That is because the valuation of the 35% stake at 23 times the earnings of Hap Seng Star and 3.5 times the book value of the auto subsidiary appear to be rich compared with what listed auto companies are trading at.