Atlan sees lower profit, revenue for 1Q
Atlan, which is involved in duty free retailing, manufacturing of automotive parts, property investment and hospitality and lifestyle, said its revenue was also lower for the quarter under review at RM99.41mil, compared to RM117.92mil in the same quarter last year.
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The Star
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- The Star
Atlan disposes of its subsidiary for RM175milAtlan disposes of its subsidiary for RM175mil
PETALING JAYA: Atlan Holdings Bhd is proposing to dispose of its entire issued and paid-up share capital in United Industries Holdings Sdn Bhd (UI) to Singapore-based Duty Free International Ltd for RM175mil. In a filing with Bursa Malaysia, the automotive stamping firm said the disposal of its wholly-owned subsidiary is intended to strengthen the company's financial position by providing additional capital to support its working capital requirements and drive the expansion of its property and hospitality business, as well as fund potential investments. 'As part of this strategy, the company aims to streamline the group's corporate and business structure to enhance operational efficiency and strategic focus.' Atlan said the disposal would also allow the company to monetise its investment in UI, realising its value in cash while retaining substantial control. Proceeds from the proposed disposal are expected to fund key expansion initiatives, including the redevelopment of a Jalan Ampang property and fund potential investments to deliver meaningful contributions to the group's revenue and earnings, according to Atlan.
Malaysian Reserve
3 days ago
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Atlan to sell entire stake in United Industries for RM175m to Duty Free International
ATLAN Holdings Bhd has proposed to dispose of its entire equity interest in United Industries Holdings Sdn Bhd (UIHSB) to its 75.53%-owned Singapore-listed subsidiary Duty Free International Ltd (DFIL) for RM175 million in cash. The transaction, which involves 37.7 million shares representing 100% equity in UIHSB, is part of a strategic move to streamline Atlan's business structure and strengthen its financial position, the group said in a bourse filing. The sale consideration values UIHSB at 8.57 times its audited FY2025 profit after tax and minority interest (PATAMI) of RM20.42 million, and 4.91 times its EBITDA of RM38.47 million. UIHSB and its subsidiaries manufacture and market automotive component parts including exhaust systems, fuel tanks, and brake systems, supplying to original equipment manufacturers (OEMs) in Malaysia. Despite the full disposal, UIHSB will remain a subsidiary of Atlan by virtue of Atlan's majority stake in DFIL. However, Atlan's effective ownership in UIHSB will drop from 100% to 75.53%, which will reduce its attributable earnings going forward. Proceeds from the sale will be used for the redevelopment of Atlan's Jalan Ampang property (RM60 million), potential investments (RM78.5 million), working capital (RM30 million), and transaction expenses (RM6.5 million). Meanwhile, DFIL is proposing to diversify its core business beyond duty-free retailing to include automotive parts manufacturing, in line with its acquisition of UIHSB. The group said the new business will provide stable recurring income and reduce reliance on the increasingly competitive duty-free segment. The acquisition and diversification are subject to shareholder approvals at upcoming EGMs of both Atlan and DFIL. If approved, the deal is expected to be completed in 4Q2025. –TMR
New Straits Times
3 days ago
- New Straits Times
Atlan Holdings to dispose of 100pct equity interest in United Industries for RM175mil
KUALA LUMPUR: Atlan Holdings Bhd has inked a conditional agreement to sell the entire paid-up capital of its automotive components manufacturing arm, United Industries Holdings Sdn Bhd (UIHSB), to its 75.53 per cent-owned subsidiary Duty Free International Ltd (DFIL) for RM175 million. The transaction involves the sale of 37.7 million shares, representing 100 per cent equity interest in UIHSB, Atlan said. "The proposed disposal is intended to strengthen the company's financial position by providing additional capital to support its working capital requirements and drive the expansion of its property and hospitality business as well as fund potential investments," it said in a filing with Bursa Malaysia today. Atlan said it plans to utilise RM60 million for redeveloping its property located in Jalan Ampang, Kuala Lumpur; RM78.50 million for potential investments that complement its existing business; and RM30 million for working capital. "The disposal will also allow the company to monetise its investment in the United Industries Group, realising its value in cash while retaining substantial control of the group," it said. The disposal to Singapore-based DFIL is expected to be completed by the fourth quarter of 2025. It is subject to the approval of Atlan's shareholders as well as the non-interested shareholders of DFIL. Meanwhile, DFIL said in a statement that the proposed acquisition of UIHSB represents a strategic initiative by the group to diversify beyond its existing core business in duty-free and duty-paid retailing in Malaysia. "While the duty-free segment continues to be a key revenue contributor, the board acknowledges the need to mitigate concentration risk and enhance the group's long-term resilience by expanding into business sectors that is able to provide stable recurring income," it added.
