It is learnt that Naza Group has bought a large stake in Kumpulan Jetson, with a deal likely to be announced to Bursa Malaysia soon. It will mark the entry of the Naza Group to the listed company arena.

In 2004, Naza Group made a bid for a strategic stake in well-diversified DRB-Hicom group but failed. Led by the late Tan Sri SM Nasimuddin SM Amin then, the group had also made a bid for Proton Bhd.

Yesterday, about 19.2 million shares or 36.4% of Kumpulan Jetson crossed in several large off-market block trades at 70 sen a share. The purchaser is said to be Naza Group.

The sellers of the shares are likely to be Datuk Teh Kian An, the managing director and controlling shareholder of Kumpulan Jetson and his brother Tee Keng Kok, who is an executive director of the company. The two, together with chairman Isnin Rahim, are the co-founders of Kumpulan Jetson.

Although the shareholding structure of Kumpulan Jetson is fragmented, the shares of the brothers and their spouses, Datin Leng Ah Chu and Lim Hak Ho are held under their private vehicles Next Peak Assets Ltd, Adiljaya Sdn Bhd and KK Tee Holdings Sdn Bhd. The three companies are said to be in control of about 37% of the company.

“The acquisition of Kumpulan Jetson is in line with the Naza Group’s plan of expanding its property development unit. The owners of Jetson are quite elderly as well and may want to cash out,” the source said.

Since mid-July, Kumpulan Jetson’s stock has surged about 55% to its current level of 70 sen.

For its six months ended June, Kumpulan Jetson posted a paltry net profit of RM454,000 on the back of RM52 million in revenue. For the corresponding period last year, the company made RM14.3 million on RM55.6 million in turnover. Kumpulan Jetson’s net asset per share as at end-June was RM1.54.

Naza Group is said to be listing its property arm, Naza TTDI Sdn Bhd (formerly TTDI Development Sdn Bhd), but this has not taken off yet.

Naza Group assembles and distributes marques such as Kia and Peugeot. Its property development arm is led by Naza TTDI, which was acquired from Pengurusan Danaharta for RM262.8 million in 2004.

Naza TTDI’s flagship development is Platinum in Kuala Lumpur’s Golden Triangle, with a gross development value of about RM4.1 billion.

It is not clear if Naza Group will seek a waiver from making a mandatory general offer or if it will take Kumpulan Jetson private.
 

This article appeared in The Edge Financial Daily, August 20, 2009.