TAN Chong International : VI2 0% is buying over a remaining 50 per cent stake in Singapore-based car rental company Ethoz Group for a consideration of S$42.7 million.

Tan Chong currently owns 50 per cent of the company. Another 40 per cent equity stake is held by Tokyo and New York-listed financial services group Orix Corporation (OC), with a remaining 10 per cent stake held by its 50 per cent-owned subsidiary Orix Leasing Singapore (OLS).

DBS and UOB are 30 per cent and 20 per cent shareholders of OLS, respectively.

In a bourse filing on Wednesday (Jun 29), auto dealer Tan Chong said it agreed to purchase part of OC and all of OLS’s equity interests in Ethoz for S$12.2 million and S$30.5 million, respectively.

The shares acquired from OC by Tan Chong amount to 4 per cent of the total issued share capital of Ethoz. Ethoz will further repurchase from OC, shares representing about 36 per cent of the capital of the company, for a consideration of S$109.8 million.

Ethoz will become a wholly-owned subsidiary of Tan Chong upon completion of the acquisition, which is expected to take place on Jul 1, 2022.

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According to Tan Chong, enhanced control over the operations of Ethoz will provide greater flexibility in determining the company’s strategic direction as well as unfettered day-to-day decision making processes.

This would therefore accelerate the efficiency and competitiveness of Ethoz’s businesses, said the company, which imports Nissan and Subaru.

Shares of dual-listed Tan Chong were unchanged at HK$1.92 on the Singapore Exchange mainboard as at the midday trading break.