Jardine Cycle & Carriage (Jardine C&C) is acquiring the 30% stake, or 300,000 shares in the issued share capital of Republic Auto for a cash consideration of $30 million.
Currently, Jardine C&C holds 70% interest in Republic Auto. Following the acquisition, Republic Auto will become a wholly-owned subsidiary of the company.
The acquisition will take place across two tranches, with 250,000 shares acquired by Jardine C&C for $25 million on June 30, with the remaining shares to be acquired on June 30, 2022.
The acquisition is being funded through internal sources and/or external borrowings.
As at Dec 31, 2020, the net asset value per share for Republic Auto amounted to $26.63. In its filing to the Singapore Exchange (SGX) on June 30, Jardine C&C says that the consideration , which translate to $100 per share, was arrived following negotiations that took into account Republic Auto’s historical earnings and growth potential.
The acquisition is not expected to have a material impact on Jardine C&C’s net tangible assets or earnings per share.
Shares in Jardine C&C closed down 6 cents or 0.28% lower at $21.36.
