WITH UMW-OG

New Straits Times - - Business - BADRUL FEISAL AB­DUL RAHIM

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.

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