Malaysian tycoon Syed Mokhtar weighs options for DRB-Hicom, sources say
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Tan Sri Syed Mokhtar Albukhary owns 56 per cent of the Kuala Lumpur-listed conglomerate through an investment vehicle.
PHOTO: THE STAR/ASIA NEWS NETWORK
KUALA LUMPUR – Malaysian tycoon Syed Mokhtar Albukhary is conducting a strategic review of conglomerate DRB-Hicom, according to sources with knowledge of the matter.
The businessman is in talks with potential advisers on options that could involve a buyout of the company, said the sources. He is also weighing a stake sale or other ways to further streamline DRB-Hicom’s businesses, the sources said.
Tan Sri Syed Mokhtar owns 56 per cent of the Kuala Lumpur-listed company through an investment vehicle, according to data compiled by Bloomberg.
Shares of DRB-Hicom climbed 4.8 per cent on Thursday, their biggest move in two weeks. The company has a market value of nearly RM3 billion (S$922 million).
Deliberations are at an early stage and no final decision has been made, said the sources. Representatives for DRB-Hicom and Mr Syed Mokhtar did not immediately respond to calls and e-mails seeking comment.
Should Mr Syed Mokhtar decide to buy out DRB-Hicom, it would become the second of the businessman’s companies to recently delist from the local bourse. MMC Corp, a company involved in ports and logistics, power generation and engineering and construction, was taken private in 2021.
DRB-Hicom bought a controlling stake in domestic automaker Proton in 2012 from state-owned Khazanah Nasional. It sold 49.9 per cent of the firm in 2017 to China’s Zhejiang Geely Holding Group, a deal that also gave Geely a majority interest in iconic British sports car brand Lotus Cars.
The Malaysian conglomerate’s automotive division has a complex that assembles about 17,000 units annually, with brands like Mercedes, Suzuki and Isuzu, according to its website.
As a top defence contractor in the country, DRB-Hicom is also involved in the development, assembly and distribution of military vehicles for the Malaysian Armed Forces.
Its other interests include Bank Muamalat, a fully fledged Islamic lender, national postal service provider Pos Malaysia as well as investments in real estate, the website shows. BLOOMBERG
