Buys additional 26.31% for P930M
BERJAYA Philippines Inc. said on Monday it has raised its stake in HR Owen Plc., franchise holder of luxury car brands distributed in London, to nearly 100 percent as part of its investment strategy.
In a disclosure to the Philippine Stock Exchange, Berjaya said its board of directors approved the acquisition of 6.59 million shares, or a 26.31 percent stake, in HR Owen on Thursday last week at £2.25 or P141.12 per share, for a total transaction value of £14.8 million or P930 million.
On the same day, the company executed a share sale agreement with Bentley Motors Limited to purchase the HR Owen shares.
Based on the terms of payment, Berjaya Philippines will pay 10 percent of the deal upon execution of the share sale agreement with the balance to be paid in six months.
The acquisition raises Berjaya’s stake in HR Owen to 98.38 percent from 72.07 percent previously.
It said the acquisition was made “for investment purposes, and in order to own almost all the shares of the company.”
Berjaya obtained control of HR Owen after a successful takeover bid in October 2013 in which it acquired 69.74
percent of the luxury car dealer’s issued and outstanding capital.
HR Owen is a company registered in England and Wales which operates a number of vehicle franchises in the prestige and specialist car market such as Aston Martin, Audi, Bentley, BMW, Bugatti, Ferrari, Lamborghini, Lotus, Maserati, Mini, Pagani and Rolls-Royce. The company provides both sales and after sales services, predominantly in the London area.
Incorporated in 1924, Berjaya is an investment holding firm with subsidiaries engaged in the business of casinos and gaming through leasing online lottery equipment; hotels; automotive; food through Papa John’s Pizza chain; and wholesale of various products.
Its hotel portfolio includes Best Western Astor Hotel and Berjaya Makati Hotel, while its automotive business includes distribution of brands under HR Owen and Mazda in the Philippines.
According to its website, the Berjaya Philippines is 74.2 percent owned as of April 30, 2016 by Berjaya Lottery Management (HK) Limited of Hong Kong, and 14 percent by Berjaya Sports Toto (Cayman). Its ultimate parent is Berjaya Sports Toto Berhad of Malaysia, a publicly listed company in the Main Board of Bursa Malaysia Securities Berhad.