KUALA LUMPUR: UMW Holdings Bhd
, which launched a takeover of MBM Resources and car maker Perodua, has received the Securities Commission's “acknowledgement receipt” for its Islamic note programme of RM2bil.
The perpetual Sukuk programme has been assigned a preliminary rating of A1 which has been placed on “Rating Watch positive” by RAM Rating Services.
UWM received the acknowledgement receipt from the SC on March 22 pursuant to its lodgement of the perpetual Sukuk programme with the SC.
UWM said the issuance of the Sukuk was expected to improve its borrowings structure as it could access the capital markets for longer tenure funding.
The Sukuk allows it to be treated as part equity from a rating perspective and as 100% equity from an accounting perspective, thereby strengthening UMW ’s balance sheet.
The proceeds raised would be used by the group to refinance its existing financing/debt obligations (whether in whole or in part), and/or to finance working capital requirements, investments, capital expenditure and/or its general corporate purposes.
CIMB Investment Bank and Maybank Investment Bank are the joint principal advisers, joint lead arrangers and joint lead managers for the Sukuk programme.
CIMB Islamic Bank and Maybank Islamic are the joint Shariah advisers.
On March 9, UMW offered to buy all the ordinary shares in MBM Resources held by Med-Bumikar Mara Sdn Bhd and Central Shore Sdn Bhd, a unit of Med-Bumikar, collectively representing a 50.07% interest in MBM Resources for RM501mil, or RM2.56 apiece.
Currently, MBM Resources holds a 22.58% effective equity interest in Perodua.
If UMW’s proposal is accepted, then its shareholding will rise from nil to 50.07% in MBM Resources, and UMW will be obliged to extend a mandatory general offer for the rest of MBM Resources’ minority shareholders.
Separately, UMW has also proposed to additionally acquire 14 million ordinary shares, or 10%, in Perodua held by PNB Equity Resource Corp Sdn Bhd (PERC), at a price of RM417.5mil, or RM29.80 a share. PERC is the private equity investment arm of PNB.
To finance the acquisition, it planned a cash call which could raise up to RM1.1bil cash.
Proceeds raised from the rights issue will be used to finance the recently proposed acquisition of 50.07% stake in MBM Resources as well as the mandatory general offer, if the acquisition materialises.
The purchase of remaining MBM Resources shares will be satisfied by either cash or issuance of new UMW shares.
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