KUALA LUMPUR (June 8): Berjaya Corp Bhd (BCorp) said today it has divested its entire 51% stake in Berjaya Auto Alliance Sdn Bhd (BAASB) comprising 6.12 million ordinary shares to Bermaz Auto Bhd (BAuto) and other shareholders of BAASB for a cash consideration of RM6.67 million.

BAASB is involved in the distribution of vehicles under the Peugeot marque in Malaysia.

Commenting on the divestment, BCorp Group Chief Executive Officer Jalil Rasheed said the group is in the process of transforming into a diversified consumer group with a focused business vertical.

He said in a statement today that this divestment is part of the restructuring and rationalisation exercise to divest BCorp’s non-core assets to create and enhance shareholder value.

“With Bermaz being part of the BCorp Group previously, we recognised that it would be more synergistic for Bermaz to acquire BAASB.

“Bermaz’s capabilities and expertise in the automotive industry have been proven by their tremendous success and impressive track record in running the Mazda business, and we are confident that they will be able to do well in replicating the same business success for Peugeot,” said Jalil.

Meanwhile in a separate statement, BAuto said it had acquired an additional 35% stake in BAASB from BCorp for a cash consideration of RM4.58 million or at RM1.09 per BAASB share.

Following the acquisition, BAuto’s stake in BAASB has increased from 20% to 55% and BAASB is now a subsidiary of BAuto.

The company said the acquisition — funded entirely via internally-generated funds — represents an opportunity for BAuto to acquire a strategic controlling stake in BAASB which holds the distributorship of renowned Peugeot marque vehicles in Malaysia and facilitate the consolidation of BAASB’s results into the BAuto Group.

“There are no material financial effects to BAuto Group and no approvals are required from the shareholders and relevant authorities,” it said.

At the closing bell today, shares of BCorp fell half a sen or 1.64% to 30 sen, giving the group a market capitalisation of RM1.57 billion. Meanwhile, BAuto rose three sen or 2.11% to RM1.45, bringing its market value to RM1.69 billion.