Pos Malaysia takeover: DRB-Hicom not yet notified

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It looks as if we have to wait a bit longer to find out who has clinched the bid to take over Khazanah Nasional Berhad’s 32 per cent stake in Pos Malaysia.

Pos Malaysia is a valuable public asset because of its network of 697 outlets and 16 properties.

Business Times had earlier reported that DRB-Hicom had won the bid to buy the stake from Khazanah for RM623m (RM3.60 per share). (The other shortlisted contender reportedly was Scomi.) That prompted DRB-Hicom to announce to Bursa that the firm “has yet to receive any notification from Khazanah Nasional Berhad”.

I don’t know about you, but a few hundred million ringgit seems to me a small price to pay for strategic control of such an extensive physical network of outlets across the country.

DRB-Hicom is controlled by Syed Mokhtar Al-Bukhary. Syed Mokhtar already has an interest in many of the biggest infrastructure projects in the country. He controls a couple of the largest ports in Malaysia, Port of Tanjung Pelepas and Pasir Gudang port in Johor, as well as Senai Airport. He has also been mentioned in reports about the Penang Port takeover.

Syed Mokthar’s Tradewinds gained control of Bernas, which has a monopoly of rice distribution in the country. Tradewinds also controls Central Sugars Refinery Sdn Bhd and Kilang Gula Padang Terap Bhd.

In 2007, Gamuda and Bukhary’s MMC were awarded the northern portion of the rail double-tracking job for RM12.5 billion.

In April 2010, DRB-Hicom reportedly received a letter of intent from the government to manufacture and deliver a dozen variants of the Malaysian AV-8 armoured wheeled vehicle.

The tycoon also has an interest in Malakoff Corp, the country’s largest independent power producer.

DRB-Hicom’s announcement to Bursa:

We refer to the article in the New Straits Times, Business Times, Cover Page today, in particular to the following header:

“DRB-HICOM wins Pos Stake”

DRB-HICOM wishes to state that as at today, the Company has yet to receive any notification from Khazanah Nasional Berhad in relation to the above.

DRB-HICOM will make the appropriate announcement(s) to Bursa Malaysia Securities Berhad (“Bursa Securities”) in a timely manner in accordance with the Bursa Securities Listing Requirements, as and when necessary.

This announcement is dated 20 April 2011.

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Sangam

What is the synergy of DRB-Hicom’s core business with Pos Malaysia?

I fail to see one.

Erma

Anil failed to add that Hicom car spare-parts can be delivered to you via Pos Laju.

Yang

And within a few days of Najib announcement, owners of Tricubes would have earned millions. After that the vultures would be waiting again to pick up whatever there is left over …

Shana Babu

Another typical ‘I buy you, you buy him, he buys me’ type of transaction among the bumi tycoons, while pocketing tons of money from investors in the process. No true value creation at all.

Peter Ho

(Some) people (may have allegedly) made money from ‘Insider Trading’ in Bursa KL by speculation to move the stock price with their so-called plan and announcement to buy this and that. Contra trading to make money in a day!

That’s how the rich gets richer.

The rest of us can continue to try our luck with Amanah Saham. Good luck!