KUALA LUMPUR (Aug 11): BTM Resources Bhd plans to acquire no less than 51% stake in Kuantan-based Pendragon Auto Sdn Bhd, which is an exclusive BMW car dealer in Malaysia's east coast.

In a filing with Bursa Malaysia today, BTM said its wholly-owned subsidiary BTM Marketing & Trading Sdn Bhd has entered into a preliminary discussion with Pendragon Auto, with the aim to eventually cumulate into a definitive shares sale agreement or a shares subscription agreement (SSA) on a stake sale.

Pendragon Auto holds exclusive distribution rights to BMW cars in Pahang, Terengganu and Kelantan since July 5, 2010.

BTM said it intends to finance the purchase of the shares or the subscription of the new shares in Pendragon Auto through internal funds and/ or banking facility.

A full disclosure of the transaction will be made upon the signing and execution of the definitive SSA, it added.

BTM shares (fundamental: 1.65; valuation: 0.3) closed down 40% or 17 sen to 25.5 sen today, bringing a market capitalisation of RM52.79 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)