DRB-HICOM to go private?

DRB-HICOM to go private?

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FIRST QUARTER TARGET: Tycoon Syed Mokhtar may make standalone offer, says source


KUALA LUMPUR: Tan Sri Syed Mokhtar AlBukhary may make a standalone offer to privatise DRB-HICOM Bhd, the country's biggest automotive company, people working on the plan said yesterday.

Business Times understands that the plan is being helmed by privately-held Meridian Solutions Sdn Bhd. Meridian is a unit controlled by Syed Mokhtar's top financial aide, Ooi Teik Huat.

The low-profile 53-year-old Ooi is one of the Syed Mokhtar's top backroom boys, who sits on the board of many companies in which the Kedah-born businessman has a controlling stake.

Ooi currently sits on the board of Malakoff and MMC Corp Bhd.
It is further understood that Hong Leong Bank Bhd and Public Bank Bhd are the two top banks working with Ooi on the privatisation.



"Hong Leong and Public Bank will help provide the financing for the exercise. It is scheduled to take place in the first quarter of this year," said the source.

Business Times was also told that DRB-HICOM could be taken private for between RM3.50 and RM4 a share, and that the exercise will be solely driven by Syed Mokhtar, who controls some 55 per cent of the company.

Syed Mokhtar, 61, could fork out as much as RM7.73 billion to take DRB-HICOM private.

The exercise comes barely a year after he bought Proton Holdings Bhd at RM5.50 a share or 24 times estimated earnings.
At RM4 a share, DRB-HICOM is valued at RM7.73 billion.

The stock closed at RM2.63 a share yesterday, giving it a market capitalisation of RM5.08 billion.

"None of the other shareholders are involved. It is a standalone bid as DRB-HICOM is severely undervalued. Its landbank itself has a net worth of RM10 billion," said the source.

Neither Syed Mokthar nor his representatives on the board of DRB-HICOM have briefed the board on the planned exercise.

"When they are ready with the money and the numbers tally, they will file in straight the offer to take DRB-HICOM private to the company secretary," said the source.

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Good news....hopefully true !

congratz to all CL holder huat ar

KUALA LUMPUR: Shares of [url=http://archives.thestar.com.my/search/?q=DRB-Hicom Bhd]DRB-Hicom Bhd[/url] advanced on Thursday, underpinned by reports of a possible privatisation of the group with [url=http://archives.thestar.com.my/search/?q=CIMB Equities Research]CIMB Equities Research[/url] expecting such a move would unlock immediate value.

At 10am, it was up 10 sen to RM2.73 with 9.95 million shares done. Its call warrants, DRB-Hicom-CQ added 1.5 sen to 19 sen, and DRB-Hicom-CL 3.5 sen higher at 20 sen but DRB-Hicom-CR shed 0.5 sen to 19.5 sen.

The FBM KLCI was up 0.37 of a point to 1,690.30. Turnover was 245.85 million shares valued at RM139.15mil. There were 177 gainers, 174 losers and 235 counters unchanged.

CIMB Research said any privatisation would make sense since DRB-Hicom was trading below net tangible asset (NTA) and restructuring could be accelerated through the sale of non-core assets and the separate re-listing of its automotive businesses.

"Outperform maintained. No change to our EPS or NTA-based target price. The indicative privatisation range of RM3.50-RM4 a share, according to the press, is just below our RNAV of RM4.06. Privatisation, if true, would be the catalyst to unlock immediate value, in our view," it said

Annoucement from Bursa Website :

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some truth in it

DRB-Hicom Stock Jumps on Report Mokhtar May Offer Buyout
By Gan Yen Kuan - Jan 10, 2013 5:27 PM GMT+0800

DRB-Hicom Bhd. (DRB), a Malaysian automaker, rose the most in two weeks in Kuala Lumpur trading after news reports said its biggest shareholder Syed Mokhtar Al- Bukhary may buy out the company and list its distribution arm.
The stock climbed 2.7 percent to 2.70 ringgit, its steepest increase since Dec. 28. It’s the biggest gainer in the FTSE Bursa Malaysia Top 100 Index (FBM100), which fell 0.3 percent. The shares earlier gained as much as 5.7 percent.
Billionaire Syed Mokhtar may make a standalone offer to take DRB private at 3.50 ringgit to 4 ringgit per share, Business Times reported today, citing unidentified people working on the plan. The group, which acquired national carmaker Proton Holdings Bhd. last year, may also list its distribution arm, state news agency Bernama reported yesterday.
“We believe any privatization would make sense,” Lucius Chong, an analyst at CIMB Group Holdings Bhd. (CIMB), wrote in a report today. “DRB is trading below its net tangible assets and a restructuring could be accelerated through the sale of non-core assets and the separate re-listing of its automotive businesses,” he said.
DRB, based in Shah Alam, Selangor, also has property development and construction businesses, according to its website. Syed Mokhtar, 61, owns 56 percent of the company through Etika Strategi Sdn., data compiled by Bloomberg show. He is Malaysia’s seventh richest man with assets totaling $3.3 billion, according to a Forbes magazine ranking in March.
“We are unaware, caught by surprise, and there hasn’t been any proposal that came to DRB,” Group Managing Director Mohd Khamil Jamil told reporters in Kuala Lumpur. “You put it rightly that it’s a rumor. Don’t believe the rumor.”
Last month, companies linked to Syed Mokhtar made a takeover offer for Tradewinds (Malaysia) Bhd., a palm oil planter and rice producer.
To contact the reporter on this story: Gan Yen Kuan in Kuala Lumpur at [You must be registered and logged in to see this link.]
To contact the editor responsible for this story: Darren Boey at [You must be registered and logged in to see this link.]

Wonderful World wrote:[You must be registered and logged in to see this link.]

proton is a disease for drb

and now the speculation and volatility starts

The chart ending friday....

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game not over yet...