product marine transportation vessels and two liquefied petroleum gas marine transportation vessels.
The exercise was supposed to see UMW-OG acquiring Ekuinas’s indirect stake of 42.3 per cent in Icon for new UMWOG shares, and 95.5 per cent interest in Orkim for cash.
Last week, UMWOG announced that its whollyowned subsidiary, UMW Drilling Co Ltd, was disposing of 50 per cent ownership of its drilling rig, Naga 1, to JDC Panama Inc for US$1.65 million (RM7 million), as part of its recapitalisation exercise.
It said the disposal was in line with its strategy to reduce exposures from high maintenance costs and capital expenditure of Naga 1, and was expected to be completed by next Tuesday. Meanwhile, UMW Holdings Bhd has received shareholders’ approval for the distribution of its entire stake of 1.2 million ordinary shares in UMW-OG on the basis of 1.3 UMW-OG shares for each ordinary share held in UMW to entitled shareholders, at its extraordinary general meeting (EGM) in Shah Alam yesterday.
The proposed distribution is undertaken in line with UMW’s plan to exit the loss-making O&G business.
In a circular to shareholders, UMW said it would refocus its growth trajectory on three core sectors — automotive, equipment and manufacturing engineering.
“This strategy is expected to strengthen the group’s financial position to embark on new investments in these core areas as its platform for future expansion and value creation,” it said.
UMW president and group CEO Badrul Feisal Abdul Rahim said the proposal was expected to be completed by July.
He said the sale of non-listed O&G assets under the group was expected to be completed by year-end.
“We know it is going to be challenging (to dispose of these assets) but we have set the target by the end of this year.”
He did not disclose the book value for the assets.
UMW has also proposed the reduction of the issued and paid-up capital of the group by RM89.72 million to facilitate the proposed distribution.
We know it is going to be challenging (to dispose of these assets) but we have set the target by the end of this year.