UMW Holdings has announced that it has made two separate share purchase offers in a deal that will eventually see it increasing its stake in Perodua to 70.6%, The Star reports. It currently has a 38% stake in the second national car manufacturer.

The first part of the deal is the purchase of a 50.07% stake in auto parts company MBM Resources from Med-Bumikar Mara for RM501 million. The acquisition of this will trigger a mandatory offer for the rest of the shares in MBM Resources, which currently owns a 22.58% stake in Perodua.

The planned takeover of MBM Resources – which is involved in the manufacture of automotive parts/products and also the distribution and dealership of brands such as Perodua, Daihatsu, Hino, Mitsubishi, Volkswagen and Volvo in the country – will raise UMW’s effective interest in Perodua to 60.6%.

The second offer is to buy a 10% stake in Perodua from Permodalan Nasional Berhad (PNB) for RM417.5 million in a cash-and-new shares deal. The completion of these deals will see UMW raising its stake in Perodua to 70.6%.

In a filing to Bursa Malaysia, UMW said the move will allow it to increase its strategic stake in Perodua as well as expand its exposure in the commercial vehicle segment through MBM Resources’ network. “The proposed acquisitions are consistent with the company’s strategy to enhance its core businesses in the automotive, equipment and manufacturing and engineering segments,” it said.

“It will allow the company to further improve its prospects in the automotive segment via leveraging on Perodua’s strength in the national car segment, coupled with the company’s existing presence in the non-national car segment via the Toyota marque,” it added.