C&C BINTANG EYES OTHER MARQUES
Firm open to distributing other car brands as part of growth strategy following 49pc stake sale in MBM
CYCLE & Carriage Bintang Bhd (C&C Bintang), a loyal dealer of Mercedes Benz for more than 60 years, mulls expanding its dealership to other car brands.
This came after Daimler AG exercised its call option to buy C&C Bintang’s 49 per cent stake in Mercedes-Benz Malaysia (MBM).
The dealer said although the exercise would not impact its trading operations, profitability would be negatively affected following the cessation of dividends from MBM.
Chief executive officer Wilfrid Foo TsuJin said C&C Bintang was open to the idea of distributing car brands other than Mercedes Benz as part of its medium- to longterm growth strategy.
“We are open to opportunities in the medium and longer term. It could be rightly so for any business to be able to improve and grow. We are open... whether
it comes to a point of distributing other car brands,” he said after C&C Bintang’s annual general meeting (AGM), here, yesterday.
The AGM took longer than usual as shareholders used the opportunity to express their concerns about the company’s outlook.
Analysts have said the 47 per cent stake disposal would strip the company off recurring dividend income amounting to RM11.02 million.
Following the disposal, analysts cut core earnings per share lower for C&C Bintang’s financial year 2019 and 2020 estimates by 38 to 57 per cent.
Foo said C&C Bintang aimed to grow its retail business by continuing to invest in its sites, systems and people.
This refutes a daily news report which stated that the company planned to exit the retail operations of Mercedes-Benz cars in Malaysia by selling the business to MBM.
“We have been present for 120 years and plan to be in the business for 120 years more. We will continue to focus on improvement strategies to build a business that is well-positioned for delivering exceptional journeys to its customers,” said Foo.
C&C Bintang will continue with its plans to support MBM’s network development and upgrades.
“These initiatives are aimed at enhancing the group’s ability to capture growth and deliver long-term sustainable results,” he added.