DRB-HICOM buys vehicle rental company SSKM

Posted on 11 April 2014

KUALA LUMPUR: DRB-HICOM Bhd is acquiring – through its wholly-owned subsidiary Edaran Otomobil Nasional – Sistem Sewa Kereta Malaysia Bhd from Melewar Leisure Sdn Bhd and Avis Investment Services Ltd for RM5.5mil. The conditional share sale agreement was signed on April 11 for all equity interest in SSKM amounting to 2,423,055 shares, 75% of which is held by Melewar Leisure and the rest by Avis. The deal is expected to be completed within the second quarter of 2014. DRB-HICOM in its filing with Bursa Malaysia said the acquisition would provide an opportunity for the group to diversify into the vehicle rental business to complement the vehicle leasing business currently undertaken under DRB-HICOM Leasing Sdn Bhd. “In addition, the DRB-HICOM Group can also leverage on SSKM’s existing branches network, infrastructure, customer base and the Avis brand to further create synergies between SSKM and the other relevant businesses in the DRB-HICOM Group," it said. It explained that the acquisition would be funded through EON’s internally generated funds, and would not have any effect on the finances of the DRB-HICOM group.

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