Sime Darby makes takeover offer for remaining stake in UMW Holdings

KUALA LUMPUR (Dec 6): Sime Darby Bhd will issue an unconditional mandatory takeover offer to acquire the remaining 38.82% stake it does not own in UMW Holdings Bhd for a cash price of RM5.00 per share, it said in a statement on Wednesday.

This follows the group’s conditional share purchase agreement with Permodalan Nasional Bhd (PNB) on Aug 24, 2023, to acquire 714.81 million shares or a 61.18% stake in UMW, making Sime Darby the largest shareholder in the automotive group.

Accordingly, the group has made no adjustment to the offer price at RM5 per share as of the date of the notice on Wednesday, but obligated to reduce the offer price by the amount equivalent to the net distribution per offer share with UMW, in the case of the holder exceeding the offer’s timeline.

At RM5, UMW is valued at RM5.84 billion, with the 38.82% stake valued at RM2.27 billion.

Shares of UMW stood at four sen or 0.82% higher at RM4.94 at the time of writing on Wednesday. With the current share price, the group boasts a market capitalisation of RM5.77 billion.

The UMW takeover has already received a majority support from Sime Darby’s shareholders, with 1,159 shareholders or 1.78 billion shares in favour of the deal, based on the outcome of its extraordinary general meeting on Nov 16.

Shareholders who participated in the voting represented 26% of Sime Darby’s total share capital of 6.82 billion shares, with PNB — which has a 47.25% interest, and 15.5%-shareholder EPF, abstained from voting.

The takeover, which is expected to see UMW delisted from Bursa Malaysia, will create a behemoth industrial and motor group, with presence in various markets in Asia-Pacific.

Sime Darby, which is known for its luxury marques such as BMW, Jaguar, Land Rover and Porsche, will add mass market brands under UMW, such as Toyota, Lexus and Perodua, to its stable.

In a statement, Sime Darby group chief executive officer Datuk Jeffri Salim Davidson said that by working together with Toyota, the group will be opened to opportunities in the future, and perhaps in other countries.

At the time of writing on Wednesday, shares in Sime Darby slipped three sen or 1.26%, accompanied by 27.64 million shares exchanging hands. Its market capitalisation stood at RM16.08 billion.

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