KUALA LUMPUR: The government’s strategic investment fund Khazanah Nasional Bhd will divest its entire 45% stake in Time Engineering Bhd (TEB), a move that is part of Khazanah’s divestment plan to dispose its non-core assets, via a tender process to a qualified Bumiputera entrepreneur.
The estimated value of the chunk, according to its latest market capitalisation, is RM101.6 million.
The government’s stake in TEB, an e-commerce and cyber security provider, will be diluted through a three-stage bidding process to choose the new Bumiputera shareholder, Khazanah said in a statement yesterday. The three stages involve a prequalification stage, an indicative bid stage and a binding bid stage.
“The divestment of TEB will be conducted in a transparent and merit- based manner and will be presided by an independent evaluation panel guided by a merit-based assessment,” the sovereign wealth fund said.
However, not revealing the exact date for bidding, Khazanah said: “The list of the financial and strategic evaluation criteria will be outlined in the invitation to bid in due course.”
One of the prequalifying criteria is that the bidder should be a 51% or more Bumiputera-owned and majority Bumiputera-managed company with a good financial track record and experience in the relevant sector. Other criterion include possessing strong entrepreneurship, business acumen and management capabilities in the information and communication technology sector, and offering the best bid for value creation.
TEB is the final of five non-core assets identified by Khazanah to be divested this year to fulfil the role of governmentlinked investment companies (GLICs) and governmentlinked companies (GLCs) under the New Economic Model.
Between 2004 and 2011, Khazanah had divested a total of 45 assets and companies valued at RM31.7 billion with some of the assets taken up by capable and dynamic entrepreneurs, notable among them are Pos Malaysia Bhd, Time dot-Com Bhd and The Royal Mint Exchange Sdn Bhd. Proton Holdings Bhd was sold this year to DRB-Hicom Bhd as part of the divestment plan.
Earlier this year, announcements and tenders were issued with regard to the proposed divestment of STLR Sdn Bhd by Khazanah, TM Resorts by Telekom Malaysia Bhd, Celcom Childcare Sdn Bhd by Celcom Axiata Bhd and Special Builders Sdn Bhd by UEM Group Bhd.
The divestment process of STLR has been concluded with the signing of the sale and purchase agreement while the other three companies are at various stages of the divestment process, the statement added.
Khazanah said the divestment in TEB will offer an opportunity for the acquiring party to tap into TEB’s expertise and participate in a potential extension of its concession with the government, which is due to expire in 2014.
The divestment exercise will also allow TEB to enjoy financial and strategic benefits through the ownership and management of a qualified Bumiputera company with expertise in the relevant field.