DRB-HICOM TO SELL STAKE IN ALAM FLORA FOR RM944.6m
KUALA LUMPUR: DRB-HICOM Bhd is selling its entire stake in Alam Flora Sdn Bhd to Malakoff Corp Bhd for RM944.6 million.
Both DRB-HICOM and Malakoff are linked to tycoon Tan Sri Syed Mokhtar Al-Bukhary.
DRB-HICOM said in a Bursa Malaysia filing yesterday its wholly-owned Hicom Holdings Bhd was disposing of 97.37 per cent shareholding in Alam Flora to Malakoff’s wholly-owned Tunas Pancar Sdn Bhd.
Alam Flora has a 22-year concession till September 1 2033 to collect solid waste and garbage in Pahang, here and Putrajaya.
It reported a pre-tax profit of RM99.66 million for the financial year ended March 31.
DRB-HICOM said proceeds from the disposal would be used to repay debts totalling RM500 million and as working capital for Proton Holdings Bhd.
The group will net RM735.4 million gain from the disposal.
“The proposed disposal will also allow DRB-HICOM to partly use the proceeds for its 50.1 per cent-subsidiary, Proton Holdings Bhd, which is undergoing a turnaround programme, if required.
“This turnaround programme is underpinned by a 10-year business plan which involves quality improvements, cost optimisation and new model launches,” it said.
DRB-HICOM said the proceeds would be mainly used to partfinance the development cost for new models expected to be incurred within 12 months.