Malaysia-based investment holding firm UMW Holdings Berhad has announced that its proposal to acquire a 50.07 per cent equity interest in MBM Resources Bhd (MBMR) has been rejected by the latter’s shareholders.
In a disclosure to Bursa Malaysia, UMW said that Med-Bumikar Mara Sdn Bhd and its wholly-owned subsidiary Central Shore Sdn Bhd (CSSB) have separately rejected its conditional offer.
UMW has now extended the offer period from 28 March to 30 April as it reckons that its offer price is reasonable and at a premium to the current traded share price. It also plans to continue to engage with MBMR shareholders and key principals for the deal.
“Extension of offer period but with an unchanged offer price. We believe the extension of offer period made by the group is to have more time to negotiate with MBMR’s shareholders regarding the takeover offer,” UMW Holdings told the local stock exchange.
If the offer is accepted, UMW will be required to extend a mandatory offer for the rest of MBMR’s minority shareholders under Malaysian takeover laws.
UMW Holdings had earlier announced that it proposed to acquire all the ordinary shares in MBMR held by Med-Bumikar Mara and its subsidiary CSSB as part of its bid to acquire a majority stake in carmaker Perodua.
UMW is additionally seeking to acquire a 10 per cent stake in Perodua from PNB Equity Resources Corp (PERC) at a price of MYR417.5 million ($107 million), valuing the carmaker at MYR4.175 billion ($1.07 billion). 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.
MBMR is a Malaysia-based investment holding company. It 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.
UMW Holdings Berhad is one of the largest companies and a leading industrial enterprise in Malaysia. It is engaged in the automotive, equipment, manufacturing and engineering, and oil and gas businesses in Malaysia and internationally.