KUALA LUMPUR: Shin Yang Group Bhd
is diversifying its business by acquiring the entire equity in Boulevard Jaya Sdn Bhd as well as 60% equity in each of Boulevard Motor Sdn Bhd, Boulevard Motor (Sabah) Sdn Bhd and Boulevard Motor (Labuan) Sdn Bhd for a combined RM144.5mil.
In a filing with Bursa Malaysia, the shipping services provider said it had signed the deal with Shin Yang Holding Sdn Bhd, KTE Motors Sdn Bhd and Ling Chiong Sing to purchase Boulevard Jaya, an authorised dealer of Toyota vehicles in Sarawak and holder of a dealership agreement with UMW Toyota Motor Sdn Bhd.
It had also penned the deal to acquire the stakes in the Boulevard Motor companies with Dwi Bumijaya Sdn Bhd.
Said Shin Yang Group, the purchase consideration will be satisfied via a combination of cash and treasury shares held by the company.
The proposed acquisition is deemed a related party transaction by virtue of the interests of members of the Ling family in both the vendors and the purchaser.
According to the group, the proposed acquisition entails the acquisition of companies with established businesses in the automotive industry and financial track records that will provide an immediate boost to the earnings of the group.
The purchase is expected to diversify and bolster its revenue and income stream, and diversify the group’s product offerings and reduce its dependency on its current business.
Additionally, it is expected to allow the group to leverage the acquired companies' networks and clients bases to cross-sell shipping services as well as vertically integrate the automotive maintenance and repair services under its own workshops and stores.
