KUALA LUMPUR: Berjaya Corp Bhd (BCorp) has sold its 51 per cent stake or 6.12 million shares in Berjaya Auto Alliance Sdn Bhd to Bermaz Auto Bhd (BAuto) and other shareholders for RM6.67 million.
Group chief executive officer Jalil Rasheed said BCorp was in the process of transforming into a diversified consumer group with focused business verticals.
The divestment was part of the restructuring and rationalisation exercise to divest our non- core assets to create and enhance shareholder value, Jalil added.
"With BAuto being part of the BCorp Group previously, we recognised that it would be more synergistic for BAuto to acquire Berjaya Auto," he said in statement today.
Jalil said BAuto's capabilities and expertise in the automotive industry had been proven by its success and impressive track record in running the Mazda business.
"We are confident that they will be able to do well in replicating the same business success for Peugeot," he added.
Berjaya Auto is a strategic alliance with France-based Groupe PSA.
It was formed on December 1, 2020 as the sole distributor of new Peugeot vehicles in Malaysia.
This included the rights of after-sales and spare parts distribution for the Peugeot, Citroen and DS marque vehicles in Malaysia.
Meanwhile, BAuto said it had acquired an additional 35 per cent stake in Berjaya Auto from BCorp for RM4.58 million.
In an exchange filing today, BAuto said the acquisition would make Berjaya Auto as its subsidiary as its stake would increase from 20 per cent to 55 per cent.
BAuto said the acquisition was done was at RM1.09 per Berjaya Auto share based on the latter's unaudited net assets value per share as at April 30, 2021.
BAuto said there was no liabilities, including contingent liabilities and guarantees were assumed and the acquisition was funded entirely via internally generated funds.
"The acquisition represents an opportunity for us to acquire a strategic controlling stake in Berjaya Auto which holds the distributorship of renowned Peugeot marque vehicles in Malaysia and facilitate the consolidation of Berjaya Auto's results into the BAuto Group," it added.