Business

Tuesday November 3, 2009

Courts Mammoth: Malaysian business not up for sale


PETALING JAYA: Courts Mammoth’s Malaysian business is not up for sale, Courts Mammoth Sdn Bhd country director Chris Yong said in a statement yesterday.

He was responding to a Reuters report quoting sources that Baring Private Equity Asia had hired Swiss bank UBS to advise on the sale of its Malaysian portfolio company Courts Mammoth, in a deal that may fetch US$300mil.

“Having recently rolled out our rebranding campaign, we remain committed to strengthening our operational, financial and consumer framework – enabling Courts to have a stronger foothold as the largest consumer electronics and furniture retailer in Malaysia,” Yong said.

Courts, once listed in both Kuala Lumpur and Singapore, was taken private in 2007 by a private equity consortium including Baring and Topaz Investment Worldwide for about US$84mil.

Courts remains focused on its growth plans in Singapore and Malaysia, says country director Chris Yong.

The Reuters report said UBS had been looking for bidders for Courts, which also operates businesses in Singapore, Indonesia and Thailand, for some months but initial market response had been tough, mainly on price concerns.

Yong said that since 2007, the company had been owned by Asia Retail Group, one of South-East Asia’s largest retail organisations, whose main shareholders were “private equity that naturally engage in investments and acquisitions of businesses.”

“The group remains focused on its growth plans in Singapore and Malaysia, and that progress will inevitably attract external interest at some point in time. At this time, the company is not in any negotiation to sell but has been considering strategies to advance its growth and scalability,” he added.

Quoting sources, Reuters said UBS was mainly helping Baring seek private equity buyers to take over Courts as Baring aimed to cash out from its investment and focus more on the Greater China market, including mainland China, Hong Kong and Taiwan.

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