KUALA LUMPUR (Bernama): DRB-Hicom Bhd
is selling an 11% stake in Motosikal dan Enjin Nasional Sdn Bhd (Modenas) to Kawasaki Heavy Industries Ltd (KHI) for RM40.3mil to enable the Japanese firm to have a higher level of participation in the management of Modenas.
The proposed disposal would increase KHI’s equity interest in the national motorcycle company to 30 per cent, Modenas said in a statement today.
"KHI is also subscribing 52 million convertible preference shares (CPS) to be issued by Modenas. Once converted, KHI’s stake in the company will rise to 48%,” it said, adding that the conversion would be subject to Modenas achieving the strategic milestones agreed between the parties.
DRB-HICOM's equity interest will fall to 52% on the conversion of the CPS.
KHI’s larger share in Modenas would see the company actively participating in the latter’s operations, said DRB-HICOM group managing director Datuk Seri Syed Faisal Albar.
"I believe it will augur a vibrant phase of customer-driven products for Modenas, especially in the street bike and sports bike segment,” he said.
Since its inception in 1960, Kawasaki has grown into a respected global motorcycle manufacturer, with factories in the United States, the Philippines, India, Thailand and Indonesia, apart from Japan.
The company’s most popular range of products include the Ninja, Versys and GTR.
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
