Jardine to take Cycle Carriage Bintang private

By THE STAR | 11 November 2019


KUALA LUMPUR: Jardine Cycle & Carriage Ltd (JCCL), the major shareholder of Cycle Carriage Bintang Bhd (CCB) has proposed to take the car distributor private.

JCCL, which owns 59.10%, had on Monday proposed CCB undertake a selective capital reduction and repayment exercise of cash RM2.20 per share -- this is 91 sen or 70.5% above last Friday's closing price of RM1.29.

When JCCL owns 100% equity interest in CCB, it does not intend to maintain the listing status of CCB on the Main Market of Bursa Malaysia Securities.

Under the proposed SCR, entitled shareholders who hold 41.20 million CCB shares will receive total cash payment of RM90.64mil.

"The offer in relation to the proposed SCR will remain open for the board’s acceptance until 5pm on Dec 6.

“The board, save for the interested directors, will deliberate on the proposed SCR and decide on the next course of action. Accordingly, a further announcement will be made in due course after the board's deliberation, ” it said.

Trading of CCB shares was suspended.

In its rationale, JCCL cited the proposed SCR provided a good opportunity for entitled shareholders to exit and realise their holdings in CCB.

It cited the challenging operating and trading environment.

JCCL also said Jardine Matheson Holdings Ltd, the ultimate holding company of JCCL, had a long-standing relationship with Daimler AG across several countries.

"JCCL as part of the group and as the controlling shareholder of CCB is committed to continue investing in network upgrades and to operate the dealerships to the required standards.

"The capital investments required to maintain the network at the requisite standards is high with long payback periods, especially in the current challenging market condition," JCCL said.

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