DRB-Hicom's disposals would enable it to consolidate its logistics business under Pos Malaysia.
KUALA LUMPUR: DRB-Hicom Bhd
's shareholders approved its corporate exercise to dispose of certain assets to its associate Pos Malaysia Bhd at its EGM on Thursday which would see it strengthening the logistic business as it reduces dependency on property and automotive.
Under the corporate exercise, the diversified DRB-Hicom proposed to dispose of the entire issued and paid-up capital of its unit, KL Airport Services Sdn Bhd (KLAS), for RM749.35mil.
The resolution received 99.99% of the votes representing 1.487 billion shares.
The second resolution was DRB-Hicom's plans to dispose of an indirect wholly owned subsidiary, Hicom Indungan Sdn Bhd, as part of a freehold industrial land in Section 28, Shah Alam, Selangor for RM69mil.
The disposals to Pos Malaysia will be satisfied via the issuance of 245.74 million new shares of 50 sen each in Pos Malaysia to Hicom Holdings at an issue price of RM3.33 per Pos Malaysia share.
For the second resolution, it received 99.99% of the votes representing 1.487 billion shares.
These disposals represent a consolidation of tycoon Tan Sri Syed Mokhtar Albukhary’s land logistics businesses into Pos Malaysia. Syed Mokhtar has a 55.92% stake in DRB-Hicom. The company, in turn, owns a 32.21% stake in Pos Malaysia.
Shareholders were told the disposals would enable DRB-Hicpom to consolidate its logistics business under Pos Malaysia. The move would also enable it sto streamline and enhance the synergies betwqeen the various business segments within its postal and logistics business.
“This will transform Pos Malaysia Group into an integrated logistics services providers serving both the traditional and electronic commerce markets,” according to company.
Meanwhile, DRB-Hicom's group managing director Datuk Seri Syed Faisal Albar Syed A.R. Albar told reporters the group wants to reduce the property and automobile revenue from 81% now to about 50% in the next five years.
He also emphasised that DRB-Hicom does not plan to take Pos Malaysia private with the injection of its logistics business into the latter.
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