The tycoon is in talks with potential advisers on options that could involve a buyout of the firm, sources say.
KUALA LUMPUR: Tycoon Tan Sri Syed Mokhtar Albukhary is conducting a strategic review of conglomerate DRB-Hicom Bhd
, according to people with knowledge of the matter.
The businessman is in talks with potential advisers on options that could involve a buyout of the firm, said the people, who asked not to be identified as the process is private.
Syed Mokhtar is also weighing a stake sale or other ways to further streamline DRB-Hicom’s businesses, the people said.
Syed Mokhtar owns 56% of the Bursa Malaysia-listed firm through an investment vehicle, according to data compiled by Bloomberg.
Shares of DRB-Hicom climbed 4.8% yesterday, their biggest move in two weeks. The company has a market value of nearly RM3bil.
Deliberations are at an early stage and no final decision has been made, said the people.
Representatives for DRB-Hicom and Syed Mokhtar didn’t immediately respond to calls and emails seeking comment.
Should Syed Mokhtar decide to buy out DRB-Hicom, it would be the second of the businessman’s companies to recently delist from the local bourse. MMC Corp Bhd, a company involved in ports and logistics, power generation and engineering and construction, was taken private in 2021.
DRB-Hicom bought a controlling stake in domestic automaker Proton Holdings Bhd in 2012 from state-owned Khazanah Nasional Bhd.
It sold 49.9% of the firm in 2017 to China’s Zhejiang Geely Holding Group Co, a deal that also gave Geely a majority interest in iconic British sports car brand Lotus Cars. — Bloomberg
