Malaysia's Naza Group may bid for DRB stake

15 Aug, 2004

The Malaysian distributor of Kia cars, Naza Group, is poised to bid for a 19.4 percent stake in motor and financial group DRB-Hicom Bhd, a business weekly said on Saturday.
Naza Group, will conduct a due diligence this week, following which it would submit an offer for the shares held by the family estate of the late Yahaya Ahmad, former chairman of DRB-Hicom, the Edge weekly said, citing unidentified sources.
The estate holds a 21.3 percent stake in DRB-Hicom as at July 23, 2003.
The company has the rights to sell General Motor Corp's Chevrolet cars as well as Volkswagen and Audi cars. It also has one fifth of EON Capital Bhd, parent of EON Bank, the country's eighth-biggest bank by assets.
Naza Group joins other bidders such as businessman Syed Mokhtar Albukhary, who has offered around 500 million ringgit ($132 million) for the shares. Businessman Nizam Razak, brother of Malaysia's deputy prime minister, is putting a bid worth around 350 million ringgit, the report said.
DRB-Hicom, which also has interests in property and waste management, told the stock exchange on Wednesday the family estate was in talks with various parties to sell its stake.
However, the firm said it had no information on who the parties were, or details of the negotiations.
DRB-Hicom shares closed 3.6 percent lower at 1.88 ringgit on Friday.

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