Sime Darby gets shareholders' nod for UMW acquisition

KUALA LUMPUR: Sime Darby Bhd's shareholders have given their approval for the proposed acquisition of Permodalan Nasional Bhd's (PNB) 61.2% stake in UMW Holdings Bhd.

Subsequently, the group will launch a mandatory general offer (MGO) for the remaining UMW shares it did not already own.

With the go-ahead, the group said it is confident of fulfilling all conditions for the deal.

Sime Darby CEO Datuk Jeffri Salim Davidson said the shareholders' agreement to the takeover shows their support for growing the group's automotive presence in Malaysia

“We appreciate our shareholders' trust and confidence and are committed to continue delivering value for them," he said in a statement following Sime Darby's extraordinary general meeting.

According to Sime Darby, shareholders of UMW will receive an offer document setting out the details of the MGO in the coming weeks.

The acquisition of the 61.2% stake in UMW is expected to be completed by the end of November 2023, while the MGO, assuming the acceptance period is fully extended, is expected to close in February 2024.

On Aug 24, 2023, Sime Darby announced it entered into a conditional share purchase agreement with PNB to acquire the latter's 61.2% stake in UMW, a well-established conglomerate with a diverse portfolio of businesses including automotive, equipment, aerospace, and manufacturing and engineering (M&E) segments.