Berjaya PH buys

Controlling stake in UK car firm

THE LOCAL unit of Malaysian conglomerate Berjaya has acquired a controlling stake in UK-listed luxury car distributor H.R. Owen PLC after an improved public offer to all shareholders.

Berjaya Philippines Inc. disclosed to the Philippine Stock Exchange that at the close of the last tender offer period, it had acquired 17.46 million shares or 69.74 percent of H. R. Owen’s issued and outstanding capital after the validity of its tender offer lapsed on October 11.

H. R. Owen operates as a franchised motor dealer in the UK, selling new and used motor vehicles of various brands. It also engages in the aftersales operations, including servicing vehicles; sale of parts and accessories; and bodyshop repair services.

It operates retail outlets in London, Berkshire, Gloucestershire, Hertfordshire, Surrey, and Manchester, which include 14 sales franchises and 13 after- sales franchises for its Aston Martin, Bentley, Bugatti, Ferrari, Lamborghini, Maserati, Pagani, and Rolls Royce vehicles.

Founded in 1932, HR Owens also operates aftersales franchises for Audi, BMW, Lotus, and MINI. and is based in London, the United Kingdom.

The transaction boosts the car distribution portfolio of Berjaya’s local unit which earlier entered into a deal with Japanese car giant Mazda Motor Corp. to set up a Mazda vehicle distribution business in the Philippines.

Berjaya initially acquired 28.81 percent of HR Owens last July and afterwards launched a series of public offerings. The original offer was at 130 pence per share, which got lukewarm reception even after an extended offering period. When the offer price was raised to 170 pence per share in September, that was when Berjaya obtained commitment to acquire more than 50 percent of outstanding shares or voting rights in the UK firm.

An improved offer at 170 pence per share was made but this was conditional on valid acceptance and on the issuer getting more than 50 percent of the shares. After a majority block was secured, Berjaya again launched an unconditional offer to acquire the rest of the shares at 170 pence per share until Oct. 11. This last offer gave it 69.74 percent control of the UK firm.

The Malaysian- backed firm earlier said funding for the acquisition of shares and the offer would come from a mix of internal funds and bank loan.