KUALA LUMPUR: UMW Holdings Bhd is planning to take over MBM Resources Bhd in a deal that will ultimately give it a controlling stake in carmaker Perusahaan Otomobil Kedua Sdn Bhd (Perodua).
UMW Holdings currently owns a 38% stake in Perodua.
“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,” it said in a filing with Bursa Malaysia.
Under the first part of the deal, UMW Holdings will acquire a 50.07% stake in MBM Resources from Med-Bumikar Mara Sdn Bhd for RM501mil, or RM2.56 per share.
The offer values MBM Resources, which owns a 22.58% effective equity interest in Perodua, at RM1bil.
Shares in MBM Resources were last traded at RM2.20 on Friday.
The purchase will trigger a mandatory offer for the rest of the shares in MBM Resources.
“UMW Holdings does not intend to maintain the listing status of MBM Resources,” it said.
MBM Resources 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.
After the completion of the MBM Resources’ takeover, UMW Holdings said it would offer to buy PNB Equity Resources Sdn Bhd’s 10% stake in Perodua for RM417.5mil.
This deal values Perodua at RM4.175bil.
Assuming full acceptance of UMW Holdings’ proposed mandatory offer for MBM Resources, the company’s effective interest in Perodua will increase from 38% to 60.6%.
The completion of the deal with PNB Equity Resources will increase its stake in Perodua to 70.6%.
“The proposed acquisitions are consistent with the company’s strategy to enhance its core businesses in the automotive, equipment and manufacturing and engineering segments” it said.
“It 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,” it added.
Maybank Investment Bank Bhd is advising UMW Holdings on the deal.