Khazanah yet to decide on buyer of stake in Pos Malaysia

  • Business
  • Wednesday, 13 Apr 2011

KUALA LUMPUR: Government investment arm Khazanah Nasional Bhd has yet to decide on the buyer of its stake in Pos Malaysia Bhd, although it has completed the evaluation of the proposals submitted by bidders.

“As announced last year, the disposal of Pos Malaysia is now in its final stage. Evaluation has been completed and recommendations will shortly be made to the Khazanah board,” Prime Minister Datuk Seri Najib Tun Razak said at the opening ceremony of Invest Malaysia 2011 yesterday.

It was widely speculated that Najib would announce the buyer of Khazanah’s 32.21% stake in Pos Malaysia yesterday, one year after he had announced Khazanah’s divestment plans in the postal company at last year’s Invest Malaysia 2010.

Najib said the evaluation process had been conducted in a transparent and market-friendly manner with a robust bidding process.

Only this January did Khazanah officially invite bids through its advisor CIMB Investment Bank Bhd for the divestment of its Pos Malaysia stake. All bidders must be 51% owned and controlled by Malaysians, with a profile that fit the goal of diversity in terms of ownership, including bumiputra participation.

StarBiz reported last month quoting sources that five companies were said to have submitted their bids for the controlling stake in Pos, and that the names include DRB-Hicom Bhd, SCOMI GROUP BHD and Nationwide Express Courier Services Bhd.

Of the two other bidders, one was said to be backed by a government financial institution and the other a small technology firm.

An independent evaluation panel comprising five professionals from the public and private sector “with extensive postal and corporate experience” had evaluated all bidders’ proposal on an anonymous basis.

Khazanah previously said that the bidders would be considered on their strategy and business plan, followed by the offer price.

The name of the shortlisted bidders was to be revealed to the panel after the shortlisting process was completed and the shortlisted bidders would then be invited to submit their revised strategy and business plan as well as their final offer.

Khazanah stressed that there were neither leading nor lagging bidders at the point of the bidding process and that all bidders needed to possess strong entrepreneurship and management capabilities with proven track record.

Meanwhile, government linked companies (GLCs) continued to make good progress with 20 of the largest GLCs posting strong performance with aggregated earnings of RM17.3bil last year, a growth of almost 50% compared with 2009.

“These top performing 20 companies continue to show strong performance, registering annual total shareholder return of 16.4% over the period of the GLC transformation programme from 2004 to 2010, significantly outpacing the Bursa Malaysia average,” he added.

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