Malaysia-based investment holding firm UMW Holdings Berhad has announced plans to acquire a majority stake in carmaker Perusahaan Otomobil Kedua Sdn Bhd (Perodua). It will do so by taking over automotive group MBM Resources Bhd (MBMR) and acquiring a stake held by PNB Equity Resources Corp (PERC).
In a disclosure to Bursa Malaysia, UMW Holdings said it has proposed to acquire all the ordinary shares in MBMR held by Med-Bumikar Mara and its subsidiary Central Shore Sdn, which collectively hold a 50.07 per cent stake in the automotive group.
UMW Holdings, which currently owns a 38 per cent stake in Perodua, is offering MYR2.56 per share or MYR501 million ($128 million) to acquire MBMR. It will then delist MBMR from Bursa Malaysia.
If the offer is accepted, UMW’s shareholding in MBMR will increase to 50.07 percent. It will then be required to extend a mandatory offer for the rest of MBMR’s minority shareholders under Malaysian takeover laws.
MBMR is involved in the distribution and dealership of major international and local vehicle brands in Malaysia such as Perodua, Daihatsu, Hino, Mitsubishi, Volkswagen, and Volvo, as well as the manufacturing of automotive parts.
In a separate proposal, UMW Holdings said it seeks to acquire the 10 per cent stake of PERC in Perodua at a price of MYR417.5 million ($107 million), valuing Perodua at MYR4.175 billion ($1.07 billion).
“The proposals will allow UMW Holdings to increase its strategic stake in Perodua, which continues to be the leading marque in Malaysia with successful recent launches,” UMW Holdings told the local stock exchange.
After the completion of the proposed acquisition and assuming full acceptance of the proposed mandatory offer, UMW Holdings’ effective interest in Perodua will increase from 38 per cent to 70.6 per cent.
Perodua, a joint venture between Malaysian and Japanese partners, was formed in 1993. Through its subsidiaries and associates, Perodua engages in the manufacturing, assembly, marketing, and distribution of motor vehicles, spare parts, and other related activities.
“The acquisitions 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,” UMW Holdings said.