Cycle & Carriage disposes its shares in Mercedes-Benz Malaysia

By ahmadzulizwan, 03 December 2018

It has been announced that Daimler AG (DAG) is exercising its call option or purchase of 66,003,000 shares of Mercedes Benz Malaysia (MBM) from Cycle & Carriage Bintang (CCB). In effect, CCB is obliged to sell the shares to DAG or such persons DAG may nominate for a consideration of RM66,003,000, after which Cycle & Carriage will not be entitled to the annual dividend of approximately RM11.2 million even when MBM declares a dividend.

[The amount of shares held by CCB represents a 49 per cent equity stake in MBM, the latter which was incorporated on 17 October 2002.]

With this disposal of shares, CCB will not have shares in MBM; completion of this share disposal will take place 12 months from the Exercise Date (30 November 2018).

CCB’s chief executive officer, Mr Wilfrid Foo, says “Cycle & Carriage Bintang would like to assure all our customers that the recent decision by Daimler AG 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. All dealerships will continue to provide you with quality sales and aftersales services in accordance with the strictest Mercedes-Benz quality standards supported by Mercedes-Benz Malaysia.”

CCB’s long history with the Mercedes-Benz brand spans over 50 years and currently is the leading dealer group for Mercedes in Malaysia with 13 sales and aftersales facilities across the country.

A full announcement of the disposal of shares have been made to Bursa Malaysia dated 3 December 2018.