BCorp auto arm listing plan rejected

by **hlk** Thu 29 Sep 2011, 19:29

PETALING JAYA: The Securities Commission has rejected the proposed listing of Berjaya Corp Bhd (BCorp)’s 80%-owned subsidiary Bermaz Motor Sdn Bhd (via Berjaya Auto Bhd) on the Main Market of Bursa Malaysia.

BCorp told Bursa Malaysia in a statement that the rejection was due to a deficit in net operating cashflows of Bermaz Motor. “BCorp’s board of directors will deliberate on the next course of action, including but not limited to the restructuring of the proposed Berjaya Auto Group.”

Bermaz Motor has been the official distributor of Mazda vehicles in Malaysia since early 2008.

However, in a email to StarBiz, Bermaz Motor executive director Datuk Francis Lee said the overall net cashflows (including the financing and investing activities) of the Berjaya Auto Group were in net cash surplus.

He said the cashflows of a company could be divided into three categories, namely net cashflows from operating, investing and financing activities.

“The group’s net operating cashflows is in a negative position or deficit but this deficit had been funded by borrowings.

“The deficit in the net operating cashflows were due to higher cash payments made to suppliers as a result of higher stock pile required to accommodate higher demand anticipated in the sale of Madza cars.” Lee said.

According to Lee, the proforma revenue of the Berjaya Auto Group increased from RM144mil during the financial year ended April 30, 2009 to RM287mil in 2010 and RM593mil in 2011.

Lee added Bermaz Motor met the profit requirement for a listing on the Main Market of Bursa.

“For the financial year ended April 30, 2009, the profit after tax of the Berjaya Auto Group is RM5.2mil, RM14.1mil (2010) and RM36.1mil (2011),” he said.

Auto industry observers have been impressed by the pace of sales growth for Mazda cars in Malaysia in the last three years.

Last year, a total of 4,325 Mazda vehicles were sold in the country with the Thailand-assembled 1.5-litre B-segment Mazda2 passenger car as the most popular model (42% of sales), followed by the C-segment Mazda3 (25% of sales).

According to the Malaysian Automotive Association, sales of Mazda passenger cars jumped 28% year-on-year to 3,836 units in the first eight months of 2011.

Bermaz Motor is aiming to sell 6,000 Mazda units this year.

The company is also planning to launch the Mazda CX-5 compact crossover sport utility vehicle in the first quarter of next year. S.