SHAH ALAM: UMW Holdings Bhd will not review its offer price for a controlling stake in MBM Resources Bhd at this juncture. But the diversified conglomerate says it will keep an open position so that it can continue to engage with the parties involved in the deal.
According to UMW group chairman Tan Sri Hamad Kama Piah Che Othman, the offer of RM501mil, or RM2.56 per share, to acquire a 50.07% stake in MBM from Med-Bumikar Mara Sdn Bhd would remain unchanged for the time being, despite reports about Med-Bumikar Mara seeking a higher price for its stake in MBM.
“We have already extended the offer period. It is up to them to evaluate whether to sell or do something else,” Hamad Kama Piah said.
“For the time being, we will stick to our position until such a time that we feel it is suitable to take a different stance,” he added.
Speaking to reporters after UMW’s AGM here yesterday, Hamad Kama Piah said the group would keep an open position and would definitely continue to engage with the parties involved.
Separately, UMW president and group chief executive officer Badrul Feisal Abdul Rahim said the company had yet to receive any indication of interest from any party since the extension of the offer period to take over MBM.
“We don’t have any indication from any side so far... let everything settle down first. I am very sure they will come back to us,” Badrul Feisal said.
Last month, UMW extended the deadline to take over MBM by another six months to Oct 31, 2018, after the offer lapsed on April 30.
UMW’s ultimate target is Perusahaan Otomobil Kedua Sdn Bhd (Perodua), in which MBM owns a direct 20% stake and an indirect interest of 2.5% through a joint venture with Daihatsu of Japan.
UMW currently owns a 38% stake in Perodua.
The group has been the single-largest shareholder in Perodua since 1993.
Meanwhile, the new deadline of its offer period was also applicable to UMW’s bid to acquire PNB Equity Resources Corp Sdn Bhd’s 10% stake in Perodua.
UMW’s bid to increase its stake in Perodua started on March 9 when it made an offer to Med-Bumikar Mara to acquire its controlling 50.07% stake in MBM for RM501mil, or RM2.56 per share, as well as an offer to buy Permodalan Nasional Bhd’s (PNB) 10% interest in Perodua at RM417.5mil, or RM29.80 apiece.
Both the deals, if they go through, would raise UMW’s effective stake in Perodua to 70.6%.
But on March 26, UMW announced that MBM had rejected its offer.
Early this month, however, StarBiz reported that Med-Bumikar Mara would seek to negotiate for a higher price from UMW for its 50.07% stake in MBM. Apart from a substantial interest in Perodua, MBM also holds dealerships for Mitsubishi, Volkswagen, Volvo and Daihatsu vehicles.
It assembles and distributes Hino trucks that is used for commercial purposes. On reports that Daihatsu, which has a 30% stake in Perodua, had opposed to UMW’s move and threathened to review its technological sharing with Perodua, Badrul Feisal said the group would continue to require Daihatsu as a technical partner for Perodua.
“We all require Daihatsu as a technical partner for Perodua... that won’t change,” he said. “I think we have explained to them in terms of our objectives or intentions ... let’s hear their decision,” he added.