Advertisement
Singapore markets open in 3 hours 31 minutes

  • Straits Times Index

    3,439.88
    +24.37 (+0.71%)
     

  • S&P 500

    5,537.02
    +28.01 (+0.51%)
     

  • Dow

    39,308.00
    -23.90 (-0.06%)
     

  • Nasdaq

    18,188.30
    +159.54 (+0.88%)
     

  • Bitcoin USD

    58,529.98
    -1,272.03 (-2.13%)
     

  • CMC Crypto 200

    1,214.06
    -47.13 (-3.74%)
     

  • FTSE 100

    8,241.26
    +70.14 (+0.86%)
     

  • Gold

    2,369.40
    0.00 (0.00%)
     

  • Crude Oil

    84.06
    +0.18 (+0.21%)
     

  • 10-Yr Bond

    4.3550
    0.0000 (0.00%)
     

  • Nikkei

    40,913.65
    +332.89 (+0.82%)
     

  • Hang Seng

    18,028.28
    +49.71 (+0.28%)
     

  • FTSE Bursa Malaysia

    1,616.75
    +1.43 (+0.09%)
     

  • Jakarta Composite Index

    7,220.89
    -7,196.75 (-49.92%)
     

  • PSE Index

    6,507.49
    +57.46 (+0.89%)
     

Jardine Cycle & Carriage in third attempt to privatise Cyle & Carriage Bintang

Samantha Chiew
·2-min read

Could third time be the charm for JC&C to privatise its Malaysian unit?

Jardine Cycle & Carriage (JC&C) has submitted a notice of unconditional voluntary take-over offer to the board of directors of Cycle & Carriage Bintang (CCB) – the group’s business unit in Malaysia.

JC&C currently holds about 89.994% of the issued share capital of CCB, which is currently listed on the main market of Bursa Malaysia Securities. CCB’s principal activities are the retail of vehicles and provision of after-sales services. It is one of the leading Mercedes-Benz dealers in Malaysia with a network of 11 outlets in the country.

ADVERTISEMENT

Under the terms of the offer, JC&C will seek to acquire all the remaining shares of CCB that it does not currently hold at a consideration of RM2.70 per offer share. In the event of the offer being fully accepted, the total consideration for this take over would stand at about RM27.2 million ($8.6 million).

The offer is not conditional upon the receipt of any minimum level of valid acceptances.

The group will fund this acquisition through internal resources and/or external borrowings.

To recap, this is JC&C’s third attempt to takeover CCB, as it did not manage to acquire all the shares from other existing shareholders. On June 4, 2021, after its second take over attempt, JC&C announced that it only managed to raise its shareholding to 88.04%. It purchased the shares back then at RM2.40 per share.

See: Jardine Cycle & Carriage to acquire remaining shares in Cycle & Carriage Bintang at RM2.40 per offer share

JC&C’s first attempt to privatise CCB was in November 2019 via a proposed selective capital reduction (SCR) and repayment exercise at RM2.20 per share.

At the time, minority shareholders blocked the privatisation with more than 10% of disinterested shareholders including listed company Muar Ban Lee Group Bhd voting against the SCR.

As at July 14, shares in CCB closed at RM2.56, while shares in JC&C closed at $26.55.

See Also: