SIME is extending a Mandatory General Offer (MGO) for UMW shares at RM5.00 per piece, following its proposed acquisition of a 61.18% stake in UMW from Permodalan Nasional Berhad (PNB) and Amanahraya Trustees Berhad (ART) for RM3,574m or RM5.00 per share in cash. We recommend ACCEPT OFFER as we believe the MGO price is a good exit price for minority shareholders.
SIME takes over UMW. SIME (OP; TP: RM2.40) has proposed to acquire 61.18% stake of UMW from PNB and ART for RM3,574m or RM5.00 per share cash (8% premium to the last traded price of RM4.62). In accordance with the Malaysian Code on Take-overs and Mergers, SIME will undertake a mandatory general offer (MGO) for the remaining shares it does not own in UMW Holdings Berhad from minority shareholders at RM5.00 per share in cash as well, valuing the whole deal at RM5,841.5m. SIME does not intend to maintain the listing status of UMW. The proposed acquisition and MGO is expected to be completed by 4QCY23 and 1QCY24, respectively.
The process of Sime Darby taking over UMW to be cimpleted by 4th quarter this year 2023. The process of MGO (Mandatory General Offer) to be completed by 1st quarter next year 2024. Still a long way to go.
Sime Darby to Acquire UMW Deal Will Cement Group's Position as Malaysia's Leading Automotive Player
Sime Darby Berhad (“Sime Darby”) today announced that it has entered into a conditional share purchase agreement (“SPA”) with Permodalan Nasional Berhad (“PNB”) to acquire PNB’s 61.2% stake in UMW Holdings Berhad (“UMW”), a well-established conglomerate with a diverse portfolio of businesses including automotive, equipment, aerospace and manufacturing & engineering (M&E) segments.
Under the terms of the agreement, Sime Darby will purchase PNB’s 61.2% stake for a total cash consideration of RM3.57 billion or RM5.00 per share. Once the agreement becomes unconditional, Sime Darby will be making a general offer for the remaining 38.8% stake that it does not hold with the aim of delisting UMW from Bursa Malaysia. “This is a strategic move to further scale up and strengthen our presence in the Malaysian automotive sector, adding two highly performing brands into our Malaysian portfolio – Toyota and Perodua. The deal will cement Sime Darby’s position as Malaysia’s leading automotive player,” said Dato’ Jeffri Salim Davidson, Sime Darby Berhad’s Group Chief Executive Officer. "As a partner of choice to some of the most admired brands in the automotive sector, we are very excited to have the opportunity to work with Toyota, one of the world’s largest and most respected automakers.”
The acquisition is accretive to Sime Darby’s earnings per share and will enhance Sime Darby’s shareholders return. Sime Darby expects the acquisition of PNB’s stake to be completed within 3 months from the date of SPA subject to regulatory and shareholders’ approvals and customary closing conditions.
@kokchengkai, nothing to worry one. Sime and UMW are established companies. Everything will run smoothly. At this moment, Bplant is left with only 2 sen premium but UMW premium has widen to RM0.40. Need a lot of mental strength.
Rough Estimate of the Time Taken to Complete the Whole Process of Sime Darby Privatising UMW 24.08.2023 –Sime Darby announced that it will take over UMW. 12.10.2023 – Notice of conditional voluntary take-over offer from Sime Darby after EGM. 06.11.2023 – Offer document (RM5.00 per lot) will be posted to UMW shareholders. 26.11.2023 – UMW shareholders have to sign and agree to take the offer of RM5.00 and send back to Sime Darby (Registrar – Tricor Investor & Issuing House Services Sdn Bhd).
26.12.2023 – Sime Darby must get at least 90% acceptance within 1 month. 26.01.2024 – UMW shareholders to get cash via CDS registered bank account for the UMW shares sold to Sime Darby.
Rough Estimate of the Time Taken to Complete the Whole Process of Sime Darby Privatizing UMW (Revised) 24.08.2023 –Sime Darby announced that it will take over UMW. 16.11.2023 – EGM 27.11.2023 – Notice of conditional voluntary take-over offer from Sime Darby after EGM. 06.12.2023 – Offer document (RM5.00 per lot) will be posted to UMW shareholders. 06.01.2024 – UMW shareholders have to sign and agree to take the offer of RM5.00 and send back to Sime Darby (Registrar – Tricor Investor & Issuing House Services Sdn Bhd).
06.01.2024 – Sime Darby must get at least 90% acceptance within 3 weeks to 1 month. 06.02.2024 – UMW shareholders to get cash via CDS registered bank account for the UMW shares sold to Sime Darby.
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