UMW slams brakes on proposed acquisitions of MBM, Perodua

PETALING JAYA: UMW Holdings Bhd is not pursuing its takeover offer for a 50.07% stake in MBM Resources Bhd and a 10% equity interest in Perusahaan Otomobil Kedua Sdn Bhd (Perodua).

The board has decided to allow the MBM offer and Perodua offer to lapse and not to further extend the period for the offers. With the lapse of both offers, UMW will not be pursuing the proposed acquisitions, mandatory takeover offer and rights issue, according to its filings with the stock exchange.

UMW’s takeover offer period for MBM and Perodua ended yesterday.

UMW had previously extended the MBM and Perodua offers by six months from April 30, despite MBM’s major shareholders Med-Bumikar Mara Sdn Bhd and Central Shore Sdn Bhd reiterating their rejection of the takeover bid for RM501 million or RM2.56 per share as it is “not reasonable”.

Med-Bumikar and Central Shore, which collectively own a 50.07% stake in MBM, are a major stumbling block to UMW’s plans to take the company private. The jewel in MBM is its 22.58% stake in Perodua.

UMW president & group CEO Badrul Feisal Abdul Rahim said given the current business environment, the group has recalibrated its corporate strategy in line with its on-going transformation efforts and will focus on improving its financial performance.

“We would like to reaffirm our commitment to enhancing the performance of our automotive segment, expanding further into highvalue manufacturing as well as increasing our product range and market presence for our equipment segment. We believe this will further strengthen our overall financial position, which will enable us to remain resilient in the increasingly challenging business environment,” he said in a statement.

Nevertheless, Badrul said it remain optimistic in exploring opportunities in the domestic market as well as expanding its global footprints.

“We are confident that the transformation efforts we have undertaken in the past few years will continue to benefit our shareholders and contribute positively to the overall growth of the Malaysian economy.”

UMW’s share price gained 1.3% to close at RM4.75 yesterday, while MBM was down 1% to RM1.99.