Malaysian tycoon Syed Mokhtar weighing options for DRB-Hicom, say sources

MALAYSIAN tycoon Syed Mokhtar Albukhary is conducting a strategic review of conglomerate DRB-Hicom, say people with knowledge of the matter.

The businessman is in talks with potential advisers on options that could involve a buyout of the firm, said the sources, who requested anonymity because the process is confidential. Syed Mokhtar is also weighing a stake sale or other ways to further streamline DRB-Hicom’s businesses, said the sources.

Syed Mokhtar owns 56 per cent of the Kuala Lumpur-listed firm through an investment vehicle, going by Bloomberg data. Shares of DRB-Hicom climbed 4.8 per cent on Thursday (Dec 15), their biggest move in two weeks. The company has a market value of nearly RM3 billion (S$923.01 million).

Deliberations are at an early stage and no final decision has been made, said the sources. Representatives for DRB and Syed Mokhtar did not immediately respond to calls and e-mails seeking comment.

If Syed Mokhtar buys out DRB, it would be the second of his companies to recently delist from the local bourse. MMC Corp, a company involved in ports and logistics, power generation and engineering and construction, was taken private in 2021. 

DRB-Hicom bought a controlling stake in domestic automaker Proton Holdings in 2012 from state-owned Khazanah Nasional. It sold 49.9 per cent of the firm in 2017 to China’s Zhejiang Geely Holding Group, a deal that gave Geely a majority interest in iconic British sports car brand Lotus Cars. 

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The Malaysian conglomerate’s automotive division has a complex that assembles about 17,000 units annually, with brands like Mercedes, Suzuki and Isuzu, says its website. As a top defence contractor in the country, DRB-Hicom is also involved with the development, assembly and distribution of military vehicles for the Malaysian Armed Forces. 

Its other interests include Bank Muamalat, a full-fledged Islamic lender, national postal service provider Pos Malaysia, and investments in real estate, the website says. BLOOMBERG