KUALA LUMPUR (May 23): Berjaya Auto Bhd (BAuto) is close to securing exclusive rights to distribute South Korea-based SsangYong vehicles in Malaysia.
Quoting sources, The Edge Malaysia business and investment weekly (Edge Weekly) in its latest May 23 to 29 issue, reported Malaysian assembly of SsangYong models could be a criteria for BAuto clinching the distributorship.
"BAuto, the sole distributor of Mazda vehicles in Malaysia and the Philippines, is close to securing the rights to exclusively distribute South Korean automotive marque SsangYong in Malaysia," Edge Weekly reported.
AmInvestment Bank Bhd wrote in a report that it was maintaining its estimates for BAuto, pending more information on the SsangYong dealership in Malaysia.
"BAuto’s success with Mazda has relied on finding the suitable partners, maintaining a light balance sheet by owning only a stake of the manufacturing side, and having a model line-up that is nimble to meet market demand.
"We maintain a fair value of RM2.60/share, pending more concrete details on the plan for SsangYong," AmInvestment said.
At 12:30pm, Berjaya Auto shares rose two sen or 0.9% to RM2.31, for a market capitalisation of RM2.62 billion. The stock saw 1.3 million shares traded.