KUALA LUMPUR, June 8 — Berjaya Corporation Bhd (BCorp) has divested its entire 51 per cent stake in Berjaya Auto Alliance Sdn Bhd (BAASB), comprising 6.12 million ordinary shares, to Bermaz Auto Bhd and the other shareholders of BAASB for RM6.67 million cash.

BAASB is involved in the distribution of vehicles under the Peugeot marque in Malaysia.

Group chief executive officer Abdul Jalil Abdul Rasheed said the company is in the process of transforming into a diversified consumer group with focused business verticals.

"This divestment is part of the restructuring and rationalisation exercise to divest our non-core assets to create and enhance shareholder value,” he said in a statement today.

He said the company recognised that it would be more synergistic for Bermaz to acquire BAASB as Bermaz was part of BCorp previously.

"Bermaz’s capabilities and expertise in the automotive industry have been proven by its tremendous success and impressive track record in running the Mazda business, and we are confident that it will be able to do well in replicating the same business success for Peugeot,” he said.

Meanwhile, in a filing with Bursa Malaysia, Bermaz said it had acquired an additional 35 per cent stake in BAASB from BCorp for a cash consideration of RM4.58 million or at RM1.09 per share.

It said following the acquisition, Bermaz’s stake in BAASB increased to 55 per cent from 20 per cent and BAASB became a subsidiary of Bermaz.

"The acquisition was funded entirely via internally generated funds,” it said.

It said the acquisition represented an opportunity for the company to acquire a strategic controlling stake in BAASB which holds the distributorship of renowned Peugeot marque vehicles in Malaysia and facilitated the consolidation of BAASB’s results into Bermaz.

It added that the corporate exercise has no material financial effects and no approvals are required from the shareholders and relevant authorities. — Bernama