Cycle & Carriage Sells Its 49% Stake in Mercedes-Benz Malaysia to Daimler
Cycle & Carriage Bintang Berhad has announced that it will sell its 49% stake/ 66 million shares in Mercedes-Benz Malaysia Sdn Bhd to Daimler AG for RM66 million. Once the sale is completed, the company will no longer be entitled to the annual dividend of RM11.2 million.
“Following Daimler’s exercise of the call option, Cycle & Carriage will cease to be entitled to the annual dividend from Mercedes-Benz Malaysia of RM11.2 million, even when Mercedes-Benz Malaysia declares a dividend,” Cycle & Carriage said in a filing with Bursa Malaysia.
Cycle & Carriage received a notice that was dated November 30 from Daimler in relation to the latter exercising its call option on the 66 million shares currently held by Cycle & Carriage.
“The exercise of the call option requires at least 12 months’ prior written notice by Daimler to Cycle & Carriage, which has been given by Daimler on Nov 30. Upon expiry of such notice period, being 30 November 2019, Cycle & Carriage shall deliver the Mercedes-Benz Malaysia shares to Daimler and Daimler shall pay to Cycle & Carriage the total consideration for the Mercedes-Benz Malaysia shares, being RM66,003,000 (option price).”
The proceeds from the disposal are expected to be utilised for working capital, repayment of bank borrowings by Cycle & Carriage Group, network infrastructure, and/or for such other purposes as deemed appropriate by the company.
“Cycle & Carriage would like to assure all our customers that the recent decision by Daimler to exercise their call option on the company’s holding in Mercedes-Benz Malaysia will not impact our commitment or ability to continue delivering exceptional experiences to our customers across our nationwide dealerships in Malaysia,” said Cycle & Carriage Chief Executive Officer, Wilfrid Foo.
“All dealerships will continue to provide you with quality sales and after sales services, in accordance with the strictest Mercedes-Benz quality standards supported by Mercedes-Benz Malaysia,” he added.
Cycle & Carriage is the largest new-and-used Mercedes-Benz vehicle dealership in Malaysia. It has been associated with the brand in Malaysia since 1951. In Klang Valley alone, the company has six Autohauses strategically located to provide one-stop convenience to customers and provide customer-focused retail experience in line with global standards.