Drb-Hicom Bhd indirect unit, Edaran Otomobil Nasional bhd (EON) is disposing of its entire equity in Drb-Hicom Leasing Sdn Bhd (DLSB) to Drb-Hicom Ez-drive for Rm14.97 Million.
Ez-drive and DLSB are wholly-owned subsidiary companies of eon. Upon completion of the proposed internal reorganisation, DLSB will become a wholly-owned subsidiary company of ez-drive.
In a filing to Bursa Malaysia, Drb-Hicom said the proposed internal reorganization would enable EON to consolidate its vehicle rental and leasing business under one company to achieve greater operational efficiency and cost savings, which would contribute positively to the Drb-Hicom group’s future earnings.
Barring unforeseen circumstances, the company said that the proposed internal reorganization is expected to be completed by first half of 2017.
In a separate filing, Drb-Hicom Bhd EON also announced the disposal of its entire stake in multi automotive service and assist Sdn Bhd for RM1.00. The proposed divestment is in line with Drb-Hicom group’s intention to streamline its operations by divesting insignificant businesses and to focus on its core businesses.
Meanwhile, in a separate filing to Bursa Malaysia, Drb-Hicom said its wholly-owned subsidiary company, PHN industry Sdn Bhd had completed the acquisition of 10 million ordinary shares of Rm1.00 in oriental summit sdn bhd for Rm23.96 Million.