Tan Chong takes 15.8pc stake in Warisan TC’s vehicle auction services unit

KUALA LUMPUR, May 29 — Vehicle assembler and distributor Tan Chong Motor Holdings Bhd (TCMH) is subscribing to new shares representing 15.79 per cent equity interest in its sister company Warisan TC Holdings Bhd’s subsidiary, MUV Marketplace Sdn Bhd (MUVM), for RM15 million.

Warisan and MUVM, which provides vehicle auction services via e-bidding, today inked a subscription and shareholders’ agreement TCMH’s wholly-owned subsidiaries TC Capital Resources Sdn Bhd (TTCR) and TCCL Sdn Bhd, said TCMH and Warisan in separate statements to Bursa Malaysia.

The two TCMH units have each agreed to subscribe for 243,750 new ordinary shares in MUVM at RM30.77 per share.

When the exercise is completed, which is expected to be this quarter, Warisan’s stake in MUVM will fall to 84.21 per cent.

MUVM is mainly engaged in the provision of used vehicles auction services, vehicles inspection and certification as well as the trading of used vehicles.

The equity participation was expected to generate synergies between MUVM, TCCR and TCCL, Warisan said.

Among others, MUVM can tap into TCCR’s dealer panel network to source for new members to participate in MUVM’s auction platform while TCCR can offer hire purchase financing to MUVM’s current dealer panel network.

It will also enable TCCL to facilitate the provision of insurance and extended warranty offerings to MUVM’s dealer panel network and end-consumer buyers, among others.

Warisan said the agreement would also provide an opportunity for MUVM to explore into any other verticals business by leveraging on the business knowledge and network of TCCR and TCCL, as well as providing working capital to part finance MUVM’s vehicle trading marketplace portfolio.

“The proceeds will be utilised by MUVM to fund its working capital requirements within two years from the date of receipt of the subscription,” it added.

MUVM owns and operates several online platforms to support its business that includes allowing the public to sell, bid and/or purchase used vehicles.

Tan Chong Consolidated Sdn Bhd, which owns about 36 per cent of Warisan, is also a major shareholder of TCMH. — Bernama