Permodalan Nasional Bhd (PNB) has announced plans to divest its first non-core business companies, FEC Cables (M) Sdn Bhd (FEC), to qualified bumiputera entrepreneurs.

On Feb 9, Prime Minister Najib Abdul Razak, at the Bumiputera Agenda Action Council, announced that PNB would divest a total of five assets to qualified bumiputera companies.

This divestment programme is part of the plan by Unit Peneraju Agenda Bumiputera, a unit under the Prime Minister’s Department, to spearhead the economic transformation of bumiputeras in the country by growing and enhancing bumiputera entrepreneurship.

“The proposed divestment of FEC, via open tender, is the first in a series of divestments under the above programme,” it said in a statement today.

PNB is expected to make subsequent announcements on the rest of the companies and businesses that had been identified for divestment in due course. 

FEC, in which PNB owns a 71.14 percent stake, was incorporated in 1967, and its principal activities are manufacturing of electrical and telecommunication cables.

PNB’s wholly-owned subsidiary, PNB Capital Holdings Sdn Bhd, also owns 20 million Redeemable Cumulative Preference Shares in FEC. 

FEC currently has two manufacturing facilities in Klang and Shah Alam. Its major customers include local power and telecommunication players, and it also supplies its products to both domestic and export markets.

“We have invited interested parties via a tender advertisement in selected newspapers today, to submit a bid for FEC,” it added.

It is intended that the potential buyers should fulfill several pre-qualifying criteria, which include being either bumiputera individuals and companies, with a good track record and solid financial standing, PNB said.

It added other selection criteria that will be considered in evaluating potential bidders would also include possessing strong entrepreneurship and business acumen, having a viable business plan, and offering the best bid for value creation.

In addition, PNB said bidders will be requested to provide assurances that they shall develop the respective companies whilst maintaining their equity stake and commitment to retain employees over a predetermined period of time.

- Bernama