DRB-Hicom signs agreement to acquire Media City Ventures for RM100m

KUALA LUMPUR, June 2 — DRB-HICOM Bhd has entered into a share sale and purchase agreement with Enigma Permata Sdn Bhd (EPSB) to acquire the remaining 49 per cent shareholding in Media City Ventures Sdn Bhd (MCVSB) not owned by DRB-HICOM, for RM100 million.

In a filing with Bursa Malaysia, DRB-HICOM said the remaining shareholding comprised 49,000 ordinary shares in MCVSB (sale shares) from EPSB.

MCVSB is an investment holding company and has a wholly-owned subsidiary, Media City Holdings Sdn Bhd (MCHSB) which, in turn, wholly owns Media City Development Sdn Bhd (MCDSB).

MCVSB, MCHSB and MCDSB are collectively known as MCVSB Group.

DRB-HICOM had on December 18, 2015 completed the acquisition of 51 per cent equity interest in MCVSB or 51,000 ordinary shares from EPSB for RM85.68 million.

Being the existing 51 per cent shareholder in MCVSB, it has been managing the MCVSB Group and does not foresee any additional nor new risks arising from the proposed acquisition.

The proposed acquisition would enable it to fully consolidate the financial returns of MCVSB Group from the concession and lease agreements and the potential profitable returns from the development of the exchange land within the medium term.

The acquisition is not expected to have any material impact on the net assets and earnings of the DRB-HICOM Group for the financial year ending December 31, 2020. — Bernama

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