KUALA LUMPUR: Shares of DRB-HICOM Bhd jumped as much as more than 10 per cent today following news that its largest shareholder Tan Sri Syed Mokhtar Albukhary is conducting a strategic review of the conglomerate.
The stock hit RM1.52 within 15 minutes of the start of trading, before reaching a high of RM1.61, or 10.27 per cent over its closing price of RM1.46 on Wednesday, right after midday break.
As at 3.30pm, the stock was traded at RM1.57 for a market capitalisation of RM3.04 billion.
Syed Mokhtar, who owns a 56 per cent stake in DRB-HICOM, was in talks with potential advisers on options that could involve a buyout of the firm, Bloomberg said, quoting sources.
He was also weighing a stake sale or other ways to further streamline DRB-HICOM, whose businesses range from services and automotive to construction and property development.
A buy out of DRB-HICOM will mean that it will be the second of the businessman's companies to recently delist from Bursa Malaysia, after MMC Corp Bhd, which deals in ports and logistics, power generation and engineering and construction, was taken private in 2021.
In its recent interim results announcement, DRB-HICOM said it had expected the performance of its current financial year ending Dec 31, 2022 to be better than last year.
The group reported a net profit of RM143.95 million for its third quarter ended Sept 30, 2022, to reverse a net loss of RM179.44 million a year earlier.
Group revenue grew to RM4.5 billion from RM2.12 billion a year earlier, while basic earnings per share stood at 7.45 sen, compared with a loss per share of 9.28 in the previous corresponding quarter.
DRB-HICOM attributed the performance mainly to the higher sales from Proton vehicles as well as higher revenue from manufacturing and engineering and automotive distribution companies.
DRB-Hicom shares closed eight sen or 5.48 per cent higher at RM1.54, with a market value of RM2.98 billion.