KUALA LUMPUR: UMW Holdings Bhd is offering nearly RM1 billion to buy substantial stakes in Perusahaan Otomobil Kedua Sdn Bhd (Perodua) and automotive group MBM Resources Bhd.
UMW had today offered to buy a 10 per cent stake in Perodua from Permodalan Nasional Bhd (PNB) for RM417.5 million or RM29.80 per share via cash and new shares.
The cash-and-new shares deal valued Perodua, which is the second national car manufacturer and Malaysia’s largest car company by sales, at RM4.17 billion.
The group will pay RM117.5 million cash and the balance via the issuance of 49.26 million new UMW shares at RM6.09 each for the Perodua stake held by PNB through PNB Equity Resources Corp Sdn Bhd.
UMW currently holds a 38 per cent stake in Perodua, while MBM Resources owns 22.58 per cent stake.
UMW offered to buy a 50.07 per cent stake in MBM Resources Bhd from Med-Bumikar Mara Sdn Bhd for RM501 million.
The proposal will trigger the mandatory offer for the remaining shares in MBM Resources.
UMW, in a filing to Bursa Malaysia, said it did not intend to maintain MBM Resources’ listing status.
The group said the proposals will allow it to increase its strategic stake in Perodua which continues to be the leading marque in Malaysia with successful recent launches.
“After the completion of the proposed MBMR acquisition, the company’s effective interest in Perodua will increase from 38 per cent to 60.6 per cent which will further increase to 70.6 per cent after the completion of the proposed Perodua acquisition,” it explained.
In addition to strengthening its exposure in the Perodua marque, UMW is looking to increase its exposure in the commercial vehicle segment via MBM Resources’ multi-brand dealerships namely Daihatsu and Hino vehicles.
MBM Resources’ auto parts manufacturing business, particularly its wheels manufacturing, safety products and noise, vibration and harshness products, will also widen UMW’s offerings in the manufacturing segment.
“The proposed acquisitions are consistent with the company’s strategy to enhance its core businesses in the automotive, equipment and manufacturing and engineering segments,” UMW said.
“It will allow the company to further improve its prospects in the automotive segment via leveraging on Perodua’s strength in the national car segment, coupled with the company’s existing presence in the non-national car segment via the Toyota marque.
“The proposed acquisitions are also expected to allow the company to benefit from economies of scale and create synergies, with an aim with an aim to enhance its financial performance and shareholders’ value,” it added.
Both offers are valid until March 28.