KUALA LUMPUR (Dec 1): Berjaya Auto Bhd (BAuto) has acquired a 20% stake in Inokom Corp Sdn Bhd for RM30 million as part of its business expansion plans.

In a filing with Bursa Malaysia today, BAuto said it has entered into separate share sale agreements (SSAs) with Berjaya Group Bhd (BGroup) and Pesumals (M) Sdn Bhd (Pesumals) today in relation to the stake acquisition.

BAuto said it acquired 10 million shares, representing 10% of Inokom from BGroup, and another 10 million shares representing the same from Pesumals. Each of the transactions cost BAuto RM15 million or collectively RM30 million, which has been fully paid upon execution of the SSAs.

The stake acquisition was fully satisfied with internally generated funds, said BAuto. Bauto is 36.74%-owned by BGroup, which in turn is wholly owned by Tan Sri Vincent Tan's Berjaya Corp Bhd.

Inokom was incorporated in Malaysia on Oct 9, 1992, with principal activities in the manufacturing and assembly of light commercial and passenger vehicles, as well as contract assembly of passenger vehicles. 

Shareholders of Inokom now are: Sime Darby Motors Sdn Bhd (51%), Sime Darby Hyundai Sdn Bhd (5%), BAuto (20%), Hyundai Motor Company (15%), BGroup (5%) and Pesumals (4%).

BAuto said the acquisition will serve as a platform for the group to expand its business operations upstream as Inokom is the contract assembler for certain Mazda models, namely, Mazda 3 and CX-5 in Malaysia.

"This would enable the group to participate in the future profitability and direction of Inokom," it said, adding that the acquisition is expected to contribute positively to the future earnings of the group. 

Shares of BAuto closed down 5 sen or 1.49% at RM3.30, giving it a market capitalisation of RM2.67 billion.