According to a term sheet sighted by Bloomberg today, Creador plans to offload 322 million of its shares in MR DIY Group (M) Bhd for RM1.43 per share, a 6.54% haircut from the counter’s last close of RM1.53.

It currently holds 464.55 million shares in MR DIY via Hyptis Ltd, Andira Cordata Sdn Bhd and Amanita Regalis Sdn Bhd.

At press time, MR DIY’s share price is up 5 sen or 3.27%, giving the company a market capitalisation of RM14.9 billion, as the news has yet to shake investor confidence.

The disposal would leave Creador with 142.55 million shares or 1.51% stake remaining. The private equity firm then plans to allow its management and select employees to subscribe for the remaining shares at the same price point of RM1.43 per share, according to the report.

Creador has yet to respond to FMT Business on the reason behind their decision to sell off their stake in MR DIY.

The firm’s move to exit MR DIY comes a month after it ceased to be a substantial shareholder of the company, subsequent to a 65 million share disposal which slashed its stake to 4.92%.

Creador CEO Brahmal Vasudevan had said during the previous sell-off then “(it was) normal for long-time investors to take some profit off the table”.

When MR DIY was listed on Bursa Malaysia in early 2020, Creador as one of the retailer’s early investors held a 15.3% stake at RM1.60 per share.

The Bee Family Ltd is MR DIY’s largest shareholder with a 50.76% equity interest, followed by Platinum Alphabet Sdn Bhd with 6.1%.

For the fourth quarter ended Dec 31, 2022, MR DIY’s net profit marginally rose 1.13% to RM136.08, while revenue grew 9.27% to RM1.07 billion on the back of 180 new stores. This brings MR DIY’s store count to 1,080 stores.

For the full year ended Dec 31, 2022, MR DIY’s net profit rose 9.52% to RM472.95 million from RM431.83 million in the previous year, with revenue up 18.15% to RM3.99 billion from RM3.37 billion.