DRB-Hicom buys remaining 49% stake in Media City Ventures for RM100m

By ASILA JALIL / Pic MUHD AMIN NAHARUL

DRB-HICOM Bhd has entered into a share sale and purchase agreement with Enigma Permata Sdn Bhd to acquire the remaining 49% interest in Media City Ventures Sdn Bhd (MCVSB) not held by DRB-Hicom for RM100 million cash.

The group had completed the purchase of a 51% stake or 51,000 shares in Media City Ventures from Enigma Permata for RM85.68 million cash in December 2015, it told Bursa Malaysia yesterday.

The acquisition will be funded via DRB- Hicom’s internally generated funds. Media City Ventures wholly owns Media City Development Sdn Bhd, which signed a 23-year concession agreement with the government in March 2012 to privatise the development of new office buildings for the Ministry of Information, Communication and Culture.

Media City Development also has ongoing supply, installation and lease agreements with the government. It receives monthly payments from the government based on the agreed charges set out in the agreements.

Upon completion of the construction works under the concession agreement, Media City Development will also receive three plots of land in Kuala Lumpur, of which a portion will be developed into a mixed development.

DRB-Hicom said the proposed acquisition will enable it to fully consolidate the financial returns of Media City Ventures group from the concession and lease agreements and the potential profitable returns from the

development of the exchange land. DRB-Hicom shares closed three sen or 1.89% higher at RM1.62 yesterday, valuing the diversified group at RM3.13 billion.