Earlier this month, UMW Holdings made a bid to increase its stake in Perodua through two separate share purchase offers, one of these looking at eventually completing the acquisition of auto parts company MBM Resources, which currently owns a 22.58% stake in the second national car company.

That bid has hit a bump after the biggest shareholder 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 – rejected UMW Holding’s offer for a takeover, The Star reports.

In a filing to Bursa Malaysia, UMW said Med-Bumikar Mara and its wholly-owned subsidiary, Central Shore (CSSB), had separately rejected its offer to acquire the two companies’ collective 50.07% equity interest in MBM Resources. The deal, reportedly worth RM501 million, would have triggered a mandatory offer for the rest of the shares in MBM Respurces.

While no reason was specified for the rejection of the UMW offer, observers indicated that the offer fell short of valuing MBM’s business adequately, and that it would have to raise its offer price for MBM in order for a deal to be struck.

The company added it had notified both Med-Bumikar and CSSB in writing of its decision to extend the period for the deal from March 28 to April 30. It also added that it would continue to engage Med-Bumikar and CSSB on the merits of the proposed acquisition.

The offer for MBM Resources came about after UMW proposed to buy a 10% stake in Perodua from PNB Equity Resource Corp (PERC), the private equity investment arm of Permodalan Nasional (PNB) for RM417.5 million. Collectively, both deals would increase UMW Holding’s interest in Perodua to 70.6% from the 38% it currently holds via its wholly-owned subsidiary, UMW Corporation.