KUALA LUMPUR (March 30): Creador is offloading its entire 4.92% stake in MR DIY Group (M) Bhd for RM664.3 million or RM1.43 per share, paving the way for an exit from the company that the private equity fund listed in October 2020.
Currently, Creador holds 464.55 million shares in MR DIY via Hyptis Ltd, Andira Cordata Sdn Bhd and Amanita Regalis Sdn Bhd.
Bloomberg quoted a term sheet showing that the private equity firm is looking to dispose of 322 million MR DIY shares at RM1.43 apiece, a 6.54% discount to the last close of RM1.53 on Thursday (March 30). The retailer's market capitalisation stood at RM14.43 billion based on closing of RM1.53.
Besides the share placement, the remaining 142.55 million shares or 1.51% stake will be made available for Creador’s management and select employees for subscription at the same price point of RM1.43 per share, according to the term sheet shown on Bloomberg.
The Edge learnt that Mr DIY's other promoter, and its management are keen to take up 1% stake of the remaining shares from Creador.
CLSA and Credit Suisse have been appointed joint placement agents for the exercises.
Creador held about 15.3% stake upon the completion of the initial public offer (IPO) less than three year ago. The IPO raised RM1.5 billion, of which RM1.2 billion went to the promoters via offer for sales then. The shares were offered at RM1.60 per share (or RM1.07 adjusted for bonus issue). The Bee Family Ltd is MR DIY’s largest shareholder with a 50.76% equity interest, followed by Creador.
The PE fund had its first share placement in August 2021, about 10 months after the listing exercise, and a few more subsequently.
Mr DIY's share price has been on a decline since April 2021, down from the peak of RM2.78.
For the full year ended Dec 31, 2022 (FY2022), MR DIY's net profit rose 9.52% to RM472.95 million from RM431.83 million in the previous year, with revenue up 18.15% to RM3.99 billion from RM3.37 billion.
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