DRB-Hicom sells Alam Flora to Malakoff for RM944mil

KUALA LUMPUR: DRB-Hicom Bhd is selling its entire stake in Alam Flora Sdn Bhd to Malakoff Corp Bhd for RM944.6mil.

Proceeds from  the disposal, DRB-Hicom told Bursa Malaysia today, will be utilise to repay debts totalling RM500mil and the rest as working capital for Proton.

“The proposed disposal provides an opportunity for DRB-Hicom to unlock the value and monetise its investment in Alam Flora at an attractive price,” it said.

Alam Flora has a 22 year concession - expiring on Sept 1, 2033 -  to collect solid waste and garbage in Pahang, Kuala Lumpur and Putrajaya. It reported a pre-tax profit of RM99.66mil for the financial year ended March 31, 2018.

Based on the selling price,  DRB-Hicom will net RM735.4mil from the disposal.

“The proceeds, if required by Proton, will be mainly used to part finance the development cost for new models expected to be incurred within the next 12 months,” DRB-Hicom said.

Both DRB-Hicom and Malakoff are linked to Tan Sri Syed Mokhtar Al-Bukhary.