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Santander has been fined more than £30m for “serious failings” in processing the accounts of dead customers, the Financial Conduct Authority (FCA) says.

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Cycle & Carriage to dispose of its 49% Mercedes-Benz stake to Daimler AG

Cycle & Carriage to dispose of its 49% Mercedes-Benz stake to Daimler AG

Cycle & Carriage Bintang Bhd (CCB) will cease to be a substantial shareholder of Mercedes-Benz Malaysia Sdn Bhd (MBM), after disposing of 66 million of its shares

The collective value of the total shares amounts to $15.8mn.

Cycle & Carriage Bintang stated in a filing with Bursa Malaysia: “Following DAG’s exercise of the Call Option, CCB will cease to be entitled to the annual dividend from MBM of approximately  RM11.2mn ($2.6 mn), even when MBM declares a dividend.”

CCB stated that it received a notice dated November 30 from Daimler AG in relation to the latter exercising its call option on the 66mn shares that are currently held by Cycle & Carriage Bintang.

 “The exercise of the Call Option requires at least 12 months’ prior written notice by Daimler AG  to Cycle & Carriage Bintang, which has been given by Daimler AG on November 30, 2018. Upon expiry of such notice period, being 30 November 2019, CCB shall deliver the MBM shares to Daimler AG and Daimler AG  shall pay to Cycle & Carriage Bintang the total consideration for the MBM Shares, being RM66mn ($15.8mn) (“Option Price”),” stated the company. 

CCB is not expected to have any gain or loss from the disposal.

The proceeds from the disposal are expected to be utilised for working capital, repayment of bank borrowings of Cycle & Carriage Bintang group, network infrastructure, and/or for such other purposes as deemed appropriate by the company, according to the filing. 

After the disposal of MBM shares, CCB reiterated that the disposal will not directly impact any of its trading operations, performance or the support of its customers.

The company stated that it continues to be a leading Mercedes-Benz dealer group in Malaysia, with 13 sales and after sales facilities across the country to serve Mercedes-Benz customers.

 In a separate statement, CCB chief executive officer Wilfrid Foo stated: “Cycle & Carriage Bintang would like to assure all our customers that the recent decision by Daimler AG to exercise their call option on the company’s holding in Mercedes-Benz Malaysia will not impact our commitment or ability to continue delivering exceptional experiences to our customers across our nationwide dealerships in Malaysia. “

“All dealerships will continue to provide you with quality sales and after sales services, in accordance with the strictest Mercedes-Benz quality standards supported by Mercedes-Benz Malaysia.” He added.

Share price of Cycle & Carriage Bintang fell 3.61%. The counter saw 33,100 shares traded overall.

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