The new largest shareholder in Pos Malaysia has announced plans to expand the postal operator’scourier and logistics businesses.
DRB-HICOM, which is one of Malaysia’s leading conglomerates, has completed the acquisition of a32.21% stake in Pos Malaysia for RM 622.8 million (€144 million) after winning a privatisation bidin April. The stake was sold by Khazanah Nasional, the government’s investment holding forstate-owned assets and strategic investments.
The Malaysian group said that it now intends to take advantage of “vast” synergies between thetwo companies. Its short-plan plans focus on increasing the market share of PosLaju, the domesticexpress parcels business of Pos Malaysia, turning around the retail network by developingelectronic services, and using the postal network to promote banking, insurance and logisticsbusinesses.
DRB-HICOM managing director Dato’ Sri Haji Mohd Khamil Jamil commented: “Synergies that can becreated between DRB-HICOM and Pos Malaysia are vast. On our part we have the necessary experienceand talents to take Pos Malaysia to a greater height. Making our wide range of products andservices available at more than 1,000 postal outlets nationwide will not only further expand ourbusinesses but also enhance Pos Malaysia’s retail business by turning its outlets into one-stopsolution centres. Ultimately, our vision is to turn Pos Malaysia into a strong relevant householdbrand of today.”
In April, DRB-HICOM’s Group Director, Corporate & Services, Dato’ Khalid Abdol Rahman, hadsaid that the group wanted to “revitalise” the logistic business of Pos Malaysia, including bypursuing “strategic alliances with domestic and global players”. PosLaju already signed acooperation agreement with UPS in June 2010, under which a new International Premium expressproduct was introduced in Malaysia, using UPS for worldwide delivery.
DRB-HICOM owns a broad portfolio of companies. Its key business areas include the automotiveindustry, where it helped developed Malaysian-manufactured cars and trucks, as well as the service,property and construction sectors. In the year ending March 2011, its revenues rose 7.8% to RM 6.8billion (€1.6 billion), with automotive and services contributing 59% and 39% of revenuesrespectively, and it made a profit of RM 701 million (€163 million).
In the year ended 31 December 2010, Pos Malaysia breached the RM1 billion revenue for the firsttime and reported revenue of RM1.1 billion (€255 million). Its operating profit rose to RM105.67million (€24.5 million) from the previous year’s RM82.35 million.
