Atlan to sell entire stake in United Industries for RM175m to Duty Free International
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
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