UMW’s bid to take control of Perodua has hit a snag. The Star reports that Perodua’s “Japanese principals” are not in favour of UMW holding an overwhelming stake in the Malaysian auto market leader.
This was revealed by MBM Resources (MBMR) chairman Datuk Abdul Rahim Abdul Halim, who said he saw a letter from the Japanese stating their opinion on the matter. “We have sighted a letter from the Japanese principals stating they are not in favour of any one company holding a majority stake in Perodua,” he said.
Perodua has a longstanding “happy marriage” (as often described by Perodua president and CEO Datuk Aminar Rashid Salleh) with Daihatsu of Japan, which together with Daihatsu (Malaysia) Sdn Bhd, Mitsui & Co Ltd and Mitsui & Co (Asia Pacific) Ltd, hold about 30% stake in Perodua.
UMW is the biggest shareholder in Perodua with a 38% stake, followed by MBMR with 22.58% and PNB Equity Resources (PER) with 10%. The conglomerate, which is Toyota’s local partner, last month proposed to acquire PER’s stake in Perodua and take over MBMR. If both deals go through, UMW will have about 70.6% equity interest in Perodua.
UMW has offered RM417.5 million for PER’s 10% stake and RM2.56 per MBMR share. The latter, which is controlled by Med-Bumikar Mara (just above 50%), rejected UMW’s offer at the end of last month. UMW has responded by extending the offer for another month until end April.
The report says that Med-Bumikar Mara is a private company owned by Majlis Amanah Rakyat (Mara) and six family-owned companies. It is said that while Mara is the single largest shareholder in Med-Bumikar Mara (29%), the six families collectively own close to 70%. Mara is for accepting UMW’s offer, but the other shareholders are against it.
This reason for this is simple – valuation. UMW’s offer values MBMR at just over RM1 billion, but MBMR’s stake in Perodua alone is worth RM950 million (direct and indirect). The company is also a franchise holder and distributor of Hino trucks, and has interest in car dealerships and auto parts makers, besides owning properties.
What is UMW’s next course of action? A separate report by The Star says that UMW is looking at how to improve its offer to Med-Bumikar Mara, which aside from MBMR’s stake in Perodua, has a 2.55% indirect interest in the carmaker via Daihatsu (Malaysia) Sdn Bhd. The report’s sources say that the option to increase the offer price for MBMR shares is not an option for UMW.
“UMW is already calling on a rights issue to raise up to RM1.1 billion to finance the takeover of MBMR. Increasing the price is not something that the board would consider,” the source said, adding that UMW could instead make an offer for MBMR’s Perodua stake alone as opposed to buying the whole company.
“There could be other sweeteners for MBM shareholders. UMW could offer MBM some special deal as the distributor of Perodua cars and supplier of parts,” a source explained. It could also improve the share swap offer – currently at 21 UMW shares for every 50 MBM shares – to further tempt MBMR shareholders.
It’s turning into a mega tussle for a mega asset. Who will blink first?
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Banzai Daihatsu banzai!!
Best selling car in Malaysia. So many fake Proton fanboys coming here condemning Perodua. Well sales figures speak for themselves
Just Myvi alone in 2 months can sell the same amount for Proton’s entire range in 1 whole year!!!!!
Yes, Myvi alone is same as total sales of Saga, Persona, Preve, Ertiga, Exora, Suprima, Perdana etc etc.
This so called Daihatsu or Renamed as Perodua in Bolehland is a forever condemned brand. Unknown worldwide is one thing. The worst part is it has made all the Rakyat look so so stupid at the driveways of our homes and on the roads.
It has and forever be labelled as having a cheapskate and low class status product of the car industry.
Why u worry
WOW. That is a sweeping statement by calling P2 owners Stupid. I wonder how the 1 millions plus owners feel now.
Daihatsu is a condemned brand?
It’s news to me
Hello, Daihatu is a cheapskate and a low class car?
What are you, the owner of Maserati? or Porsche, perhaps.
Dream on natasha, or whatever your name is…
All those negative comments by your totally true statements are either biased or just plain butthurt Malaysians who dont realize how Horrible Daihatsu Perodua cars really are.
Junkyard brand image,Scrap yard and low status vehicles for us Malaysians. Come on la, there are many other options out there besides the Junk from P2 cars. Jaguh Kampung Kereta Besi Buruk Malaysia. LMFAO
Haiz dun worry Natasha. You are totally correct. Ignore the narrow minded Perodua biased Malaysians here.
Nowadays we have the KIA Picanto and Iriz cars for sale apart from the sea of the depressing Peroduas with ‘Jenama Kereta Besi Buruk’ brand image.
My own family of four own the current Picanto, prefacelift Iriz, Honda Jazz and The Nissan Teana.
Dont worry so much. Relax and choose other brands.
Try harder brah. Replying to own dupe LOL
Not to side anyone, but for me, one of the condemned and horrible thing in Poodua is throwing out the water temperature gauge esp. with Myvi 3rd generation (even the most spartan spec Wira 1.3 got temperature gauge at right side although there’s no rpm meter), perhaps they like your car smoked or burned down due to unnoticeable overheating – that only blue and red logo is just a shit crap (if you install aftermarket temperature meter, might void the vehicle warranty)
Ya betul saya pun tak setuju ..sila up kan harga u..ok..sekian terima kasih
Hallo UMW, how bout Proton. Interested?
good job Daihatsu!..say no to UMW!!
am happy for p2 progress,,but sedih with p1..think they already in kayangan with rich wife Geily! ooo waii..
No confidence veto on gahmen link co. UMW Holdings
And run it to the ground just as you did with Toyota.
Toyota is UMW’s partner and Daihatsu is under Toyota….hmmm it’s complicated.
Toyota (Malaysia) is UMW’s partner.. Daihatsu is under Toyota (International)..hmm not that complicated
Syukur…
See, even Sushi themselves don’t trust UMW
because they f**ed up Toyota here now they wan’t to do the same to P2
Typical….when the company get famous…everyone is eyeing!
If you have the capability to drive the company further, go ahead and buy it. If you don’t have the capability, buying it is equal to destroying it.
History tell us when Proton ditch Mitsubishi, what will happened…Repeat Again, No!
Sounded patriotic but It’ll be a disaster to the Perodua in the long run bcos Toyota / Daihatsu will have no reason to share tech anymore and it’ll turn into the 2nd pre-Geily Proton in a decade.
Close shop je lah…sakit mata
Suddenly Geely will buy P2 for good…
For 25 years, Perodua’s shareholder structure has stayed the same. Around 2003, Dr. M allowed Daihatsu to take a majority stake in Perodua’s manufacturing division. Ever since then, Perodua has grown from strength to strength. As long as Perodua gets backing from the Toyota Group, they need not worry. Malaysia and Indonesia are Daihatsu’s best markets outside Japan. Daihatsu needs Perodua as much as Perodua needs Daihatsu.
UMW is taking a huge gamble trying to increase their already sizeable stake in Perodua. And now that Daihatsu has voiced their concerns, UMW is in a dilemma. Anyway, we’ll see what UMW decides to do next. If they knew what’s best for Perodua, they would not risk a major takeover of any sort. They can increase their stake to near-majority, but anything more could be pushing it.
they screwed up Toyota. now they want to screwe up P2?
NOOOOOOOOOOOOOOOOOOO!
haiya UMW!!! why u so eager to buy P2 stake.. just buy P1 la from DRB.. then JV with Geely lo.. Geely + Toyota + Proton = geli toton..
UMW is super greedy. Take a look how success they are in bringing down toyota vs honda. If the takeover went through, i suspect proton will takeover perodua anytime.
Geely new car is getting improved by miles especially the design. UMW strategy to charge higher price for everything will just destroy already strong fort of perodua in the market.
My sister bought perodua axia g already 8 mnths and till now Perodua service advisor have no idea what’s the issue with its front wheel or steering. Reach 90/km it’s started vibrating and not comfortable at all. Don’t know how this car can passed their safety and standard. If you cannot provide a good product then don’t do business, close down!!. It’s a crap… Lousy la. No solution no suggestion from service advisor… Great customer service…
sounds like either wheel balancing issue to me, or defective tyre. either one , its simple to diagnose and simple to fix.
Yeah. Sounds like the service advisor have very little knowledge about the car’s basic problem and solution.
I submitted a question in previous related post but it didn’t surface.
Now, I rephrased it in another way.
Is Mara accepting the original offer? If yes, we want to know why?
OMG.. perodua is not a wholly owned Malaysian car manufacturer??
U learn new things everyday, my friend.