Kawasaki Heavy Industries (KHI) has taken its stake in Malaysian motorcycle manufacturer Modenas from 19% to 30%. KHI has been a shareholder of Modenas since the latter began operations in 1995.

This came about after the sale of 14.3 million ordinary shares were sold to KHI by Modenas’ parent company, DRB-Hicom. In monetary terms, the additional shares are valued at RM40.3 million.

Aside from that, KHI has also purchased 52 million convertible preference shares in Modenas, which take effect should Modenas achieve certain conditions previously agreed upon by both parties. While the terms and conditions of the convertible shares were not disclosed, should the terms come into effect, KHI will increase its shareholding in Modenas to 48%.

With the increase in shareholding, KHI will take a more active role in the operations of Modenas. “I believe it will augur a vibrant phase of customer-driven products for MODENAS, especially in the street bike and sports bike segment,” said Datuk Seri Syed Faisal Albar, managing director of DRB-Hicom.

Modenas currently undertakes components machining for Kawasaki motorcycles, from its production facility in Gurun, Kedah. Inthe early years, Modenas motorcycles were based on Kawasaki products, notably the Jaguh, based on the Kawasaki Eliminator and the Kriss 110, taken from the Kawasaki Kazer.