Jardine Cycle & Carriage to privatise Malaysian arm for $29.8m

SINGAPORE - Regional auto dealer Jardine Cycle & Carriage (Jardine C&C) is looking to privatise its Malaysian arm Cycle & Carriage Bintang Berhad (CCB) for RM90.6 million (S$29.8 million), or RM2.20 per share, the firm said in a bourse filing on Monday (Nov 11).

Jardine C&C holds about 59.1 per cent of Bursa Malaysia-listed CCB, whose shares were down 3 per cent or four sen to RM1.29 on Friday.

CCB suspended trading of its shares on Monday, with Jardine C&C having submitted a formal proposal for the deal to CCB's board of directors.

It will be funded by CCB through an advance from Jardine C&C, which will utilise internal resources and external borrowings. The deal is not expected to have a material impact on Jardine C&C's net tangible assets or earnings per share.

"It presents an opportunity for the minority shareholders to exit and realise their holdings in CCB in cash, and provide CCB with greater flexibility in managing and developing its existing business without the regulatory costs and restrictions associated with being listed on Bursa Securities," said Jardine C&C.

Mercedes-Benz retailer CCB, which has 13 outlets in Malaysia, will delist and become a wholly-owned subsidiary of Jardine C&C after the deal.

Jardine C&C shares closed down $0.32 or 1 per cent to $32.27 on Friday.