CYCLE & Carriage Bintang Bhd (C&C Bintang) CEO Wilfrid Foo has affirmed that the company will continue to prioritise customer experience following the blocked privatisation by its minority shareholders.
He added that the company’s “long-term investor” Jardine Cycle & Carriage Ltd has reiterated its support for C&C Bintang and its strategic direction.
“C&C Bintang will continue to prioritise investing in our sites, systems and people to address the challenging trading environment and to position ourselves for the future,” Foo told FocusM.
He added that the company will be implementing the new automotive retail concept being used at the Mutiara Damansara branch at three other sites this year.
When asked about the failed privatisation attempt, Foo said: “Share price movements are a result of market forces and external market conditions, which we cannot control.”
During an extraordinary general meeting on Feb 11, C&C Bintang’s privatisation, which was through a proposed selective capital reduction and repayment exercise at RM2.20 per share, was blocked by minority shareholders, with 13.18% (more than the threshold of 10%) of disinterested shares voting against the resolution.
At the same time, the 57.94% that voted in favour of the resolution was not enough to hit the 75% needed for the resolution to pass, according to a bourse filing dated Feb 11.
C&C Bintang’s share price had rallied between Nov 11 and Nov 13 last year, stayed above the RM2 mark throughout the following month and January 2020, before beginning its decline on Feb 6, 2020.
The counter closed at RM1.57 on Feb 13, down three sen, with 259,100 shares changing hands. – Feb 14, 2020