PETALING JAYA: On the heels of Creador’s divestment of its remaining 4.92% stake in MR DIY last Friday for RM664.3 million, the private equity firm’s CEO Brahmal Vasudevan has resigned from the board of the home improvement chain operator.
MR DIY confirmed the exit of Brahmal in a Bursa Malaysia filing today. It said Brahmal had ceased to be the board representative for Hyptis Ltd, a unit of Creador, following Hyptis’ disposal of shares in MR DIY.
The 54-year-old Brahmal had been appointed to MR DIY’s board in August 2018. When MR DIY was listed on Bursa in early 2020, Creador, as one of the retailer’s early investors, held a 15.3% stake at RM1.60 per share.
The Bee Family Ltd is MR DIY’s largest shareholder with a 50.76% equity interest, followed by Platinum Alphabet Sdn Bhd with 6.1%.
Of the remaining 465 million shares offloaded by Creador, 360 million shares were bought by institutional investors at RM514 million, while the remaining 105 million shares were taken up by MR DIY and Creador’s management for RM150 million. The shares were disposed at RM1.43 per share, a 6.54% haircut from the counter’s last close of RM1.53.
MR DIY’s filings last Friday revealed its founder and executive vice-chairman Tan Yu Yeh bought 50 million shares or a 0.53% stake in the company for RM71.5 million. His brother and executive vice-president Tan Yu Wei acquired 7.6 million shares or 0.08%.
This raised Yu Yeh’s direct stake in MR DIY to 0.55% and Yu Wei’s direct stake to 0.09%. The pair holds another 50.76% stake or 4.8 billion shares via Bee Family Ltd.
Interestingly, the filings also showed Brahmal snapping up 14.92 million shares or a 0.16% stake via Japamala Ltd for RM21.34 million, increasing his total stake in MR DIY to 0.232%.
MR DIY shares closed 10 sen or 6.45% higher at RM1.65 today, giving it a market capitalisation of RM15.56 billion.
Creador’s multibillion-dollar funds
Since its inception in 2011, Creador has launched five funds, each of which has attracted a broad spectrum of investors and partners, ranging from international fund managers, private pension funds, other private equity firms, government-linked bodies, to private wealth managers and individuals.
These funds have been invested across a wide range of industries in South and Southeast Asia.
“We strive to create value by investing in high-growth, scalable businesses where our capital, strategic insights and operational support can drive transformation to unlock steady, sustainable returns.
“As a result, all five funds have resulted in commendable earnings for their limited partners and investors,” Creador said on its website.
Cumulatively, the five funds have raised US$2.16 billion or RM9.55 billion since 2011, according to its website. Its latest fund – Creador V – launched in 2021 raised US$700 million (RM3.09 billion).
For the fourth quarter ended Dec 31, 2022 (Q4 FY2022), MR DIY’s net profit rose 1.13% to RM136.08 million, while revenue grew 9.27% to RM1.07 billion on the back of 180 new stores. This brings MR DIY’s store count to 1,080 stores.
For FY2022, net profit rose 9.52% to RM472.95 million from RM431.83 million in the previous year, with revenue up 18.15% to RM3.99 billion from RM3.37 billion.