KUALA LUMPUR: UMW Equipment Division Sdn Bhd (UEDSB) has entered into a share sale and purchase agreement (SSPA) with Toyota Industries Corporation, Japan (TICO) to further deepen strategic collaboration between the parties with respect to the industrial equipment business.
UEDSB is an indirect wholly owned subsidiary of UMW Holdings Bhd
(UMW).
In a statement, the company said under the SSPA, UEDSB has agreed to dispose of a 26 per cent interest in UMW Toyota Material Handling Sdn Bhd (UTMH) to TICO for RM260 million.
On completion of the SSPA, UEDSB will have a majority shareholding of 74 per cent while TICO will have a 26 per cent interest in UTMH.
UMW president and group chief executive officer Datuk Seri Ahmad Fuaad Kenali said the partnership will help UMW to move up the value chain in the industrial equipment business from distributorship to a more value-driven one-stop centre service and logistics automation business.
"The opportunities will come via the introduction of new equipment, innovative solutions and improvement of value-added services to expand its customer base and strengthen market share in the territories that it operates in,” Ahmad Fuaad said.
TICO is a leading global manufacturer of material handling equipment while UMW has a strong regional presence, the statement said.
He said this collaboration is essential in supporting industries to gear towards Industry 4.0 and is expected to drive the growth of the industrial equipment business going forward.
UMW’s business relationship with TICO started in 1967 when the distributorship for Toyota forklift was awarded to Malaysia and Singapore, and this was extended later to include Vietnam and the Shanghai and Zhejiang regions in China. - Bernama
