DRB-Hicom buying rental firm

Posted on 12 April 2014
 

PETALING JAYA: DRB-Hicom Bhd is acquiring vehicle rental company Sistem Sewa Kereta Malaysia Sdn Bhd (SSKM) for RM5.5mil. The company told Bursa Malaysia yesterday that its wholly-owned subsidiary Edaran Otomobil Nasional Bhd (EON) had entered into a conditional share sale agreement with Melewar Leisure Sdn Bhd (MLSB) and Avis Investment Services Ltd for the proposed acquisition of 3.42 million shares in SSKM. “The proposed acquisition provides an opportunity for the DRB-Hicom group to diversify into the vehicle rental business, which can 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 branch network, infrastructure, customer base and the Avis brand to further create synergies between SSKM and the other relevant businesses in the group,” it said. DRB-Hicom said the proposed acquisition did not require approval from its shareholders or any other relevant authorities, adding that the acquisition was expected to be completed by this quarter. The company said the sum of RM5.5mil was arrived at on a willing buyer-willing seller basis after taking into consideration SSKM’s audited net profit and audited net assets of RM395,000 and RM1.67mil respectively for the financial year ended Dec 31, 2012, as well as its potential future earnings and the proposed capitalisation of the amount owing to MLSB as at Feb 28, 2014 of RM1.42mil.



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