Launch of Mazda Biante.
PETALING JAYA: Berjaya Corp
Bhd’s (BCorp) unit Berjaya Group (BGroup) will cease to be a direct shareholder of Berjaya Auto Bhd (BAuto) under a proposed deal which will see it sell its entire 21.88% equity interest in the Mazda car distributor for up to RM526.26mil to a special purpose vehicle (SPV).
The diversified group told Bursa Malaysia that the SPV, to be formed and controlled by “certain key management” of BAuto represented by its chief executive officer Datuk Seri Yeoh Choon San, would own up to a 31.88% stake in BAuto.
The said management themselves will inject up to about 10% equity interest in BAuto into the SPV for a consideration of up to RM240.49mil, in exchange for new shares representing a 66.67% stake in the SPV.
BGroup’s sale of its 21.88% stake in BAuto will be satisfied by shares comprising the remaining 33.33% stake in the SPV (worth RM120.25mil) and cash amounting to RM406.01mil. The SPV proposes to fund the cash portion through bank borrowings.
BGroup on Tuesday entered into memorandum of understanding with the key BAuto management personnel on the proposed disposal-cum-injection of up to 31.88% equity interest in BAuto for up to RM766.75mil or RM2.10 per BAuto share.
The BAuto group is principally involved in the distribution and retailing of Mazda vehicles as well as provision of aftersales services for these vehicles in Malaysia via units Bermaz Motor Sdn Bhd and Bermaz Motor Trading Sdn Bhd. In the Philippines, the distribution of Mazda vehicles and spare parts is undertaken by 60% owned subsidiary Berjaya Auto Philippines Inc through appointed dealers.
BAuto shares gained 1 sen to close at RM2.14 on Tuesday, while BCorp shares edged up half a sen to 39 sen.
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