Berjaya Philippines hopes to bring H.R. Owen biz model to Asia

Berjaya Philippines Inc. sees British car dealer H.R. Owen as a lucrative investment and is looking at bringing its business model in car dearlership to Asia.

 

"H.R. Owen has a good business model, it has good returns and it is an investment that can be brought to Asia," Corporate secretary Jose Bernas told GMA News Online, noting the H.R. Owen business model is different from the usual in Asia, where luxury cars of different brands are distributed and sold in separate companies.

 

H.R. Owen Group operates a number of vehicle franchises in the prestige and specialist car market which include Aston Martin, Audi, Bentley, BMW, Bugatti, Ferrari, Lamborghini, Lotus, Maserati, Mini, Pagani and Rolls-Royce for both sales and after sales, predominantly in the London area.

 

"The business model is different and is working. We're studying that in Asia," Bernas said.

 

Asked if the company will be bringing the business model to the Philippines, he said they will focus first in other markets in the region.

 

Berjaya Philippines has been persistently in extending its tender offer to buy out  shareholders of the British car dealer since August.

 

The company first extended its offer to buy H.R. Owen's shares for 130 pence apiece to September 2, from the original August 20 deadline, following a low acceptance rate from shareholders. 

 

It again extended the offer – this time for 170 pence per share – until September 27 after the board of H.R. Owen recommended that shareholders accept the £42 million ($65 million) takeover bid. 

 

On Wednesday, Berjaya Philippines further extended its offer to buy out H.R. Owen's minority shareholders by another 14 days to October 11 after it acquired more than 50 percent of the company.

 

Bernas said they are just following the London Stock Exchange rules of disclosure because H.R. Owen is listed on LSE.

 

"We're giving the minority the time to decide as mandated by rules on the LSE. Now it will depend on the shareholders if they will sell their stake to Berjaya," Bernas said. 

 

Berjaya Philippines, which is controlled by Malaysian tycoon Vincent Tan, now holds 50.16 percent, or 11,844,944 shares, of the outstanding common voting stock in H.R. Owen.

 

The company first bought a 29.8-percent stake in H.R. Owen for £8.3 million in June.

 

In September 2012, Berjaya invested 30-percent in Berjaya Auto Philippines Inc., an exclusive distributor of Mazda vehicles, it's initial venture in the automotive business.

 

Its other businesses include Philippine Gaming Management Corporation – leasing on-line lottery equipment and providing software support; Berjaya Pizza Philippines Inc., an exclusive franchise of Papa John’s Pizza; Perdana Hotel Philippines Inc.; and Perdana Land Philippines. – VS, GMA News