Friday, October 14, 2011

Boon Koon sells 75% stake of credit unit to Hitachi

KUALA LUMPUR: BOON KOON GROUP BHD [] is selling a 75% stake in its hire purchase financing unit First Peninsula Credit Sdn Bhd to Japan's Hitachi Capital Corp for RM9 million cash.

Boon Koon said on Friday, Oct 14 the price tag was equivalent to RM4 per sale share and it was a premium of RM1.84 or 85.18% above the audited net asset per share of RM2.16 as at March 31, 2011 and a net price earnings multiple of 36.8 times .

Boon Koon said Hitachi Capital, as a manufacturer affiliated financial services company, had financed its products from household appliances to automobiles and housing.

'Hence, the proposed disposal would enable Boon Koon to form a strategic alliance with a leading leasing and consumer credit company and thereby capitalise on Hitachi Capital's extensive experience and knowledge of such areas and products to provide seamless services that range from leases, loans and other financial services to function-oriented services,' it said.

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