Here’s an update on UMW Holdings Bhd’s bid to take a majority stake in Perodua. The conglomerate’s is one step closer to the prize as majority shareholders of Med-Bumikar Mara, who collectively hold 52.06% shares in the private company, voted to sell its 50.07% stake in listed MBM Resources (MBMR) to UMW. MBMR holds 22.58% stake in Malaysia’s auto market leader.

According to The Star, dissenting minority shareholders of Med-Bumikar – who have 48% stake – had walked out of the EGM last week, questioning the validity of the meeting. Of Med-Bumikar’s seven shareholders, the largest is Majlis Amanah Rakyat (Mara) with a 29% stake. The remaining shares are held by six founding families. The daily says that Mara, who wants to sell, has the support of at least two of the families.

“At the said EGM, 52.06% of the total issued ordinary share capital of Med-Bumikar had approved and voted in favour of the EGM resolution to accept the UMW offer, subject to certain requirements and conditions. In addition, the shareholders also recommended the board to form a task force committee in the negotiation with UMW, acting in the best interest of the company,” Mara said in a statement, adding that any decision by Mara is strictly guided by the potential strategic benefits brought to Mara as an entity, all Mara stakeholders, and to the nation.

It was reported that last month, dissenting shareholders led by executive chairman Datuk Abdul Rahim Abdul Halim, had filed an injunction to stop the EGM, but the application was dismissed by the Kuala Lumpur High Court. Med-Bumikar’s board had earlier rejected UMW’s offer (RM2.56 per MBM share) on the basis that it undervalued MBM.

Should it succeed in buying Med-Bumikar’s stake in MBMR, UMW intends to undertake a mandatory general offer to privatise the company, which also has the Employees Provident Fund (15.87%) and insurance company AIA (4.2%) as stakeholders.

In Perodua’s present structure, UMW is the biggest shareholder with a 38% stake, followed by MBMR with 22.58% and PNB Equity Resources with 10%. UMW, which is also Toyota’s local partner in Malaysia, proposed in February to acquire PNB’s stake in Perodua and take over MBMR. If both deals go through, UMW will have about 70.6% equity interest in Perodua.

UMW’s bid for control in MBMR will cost it some RM501 million, valuing the company at about RM1 billion. UMW’s proposal to buy its parent PNB’s 10% Perodua stake will cost it RM417.5 million.

However, there are a couple of hurdles left for UMW to clear, even if it succeeds in mopping up shares. There needs to be consent by Perodua’s joint venture partner Daihatsu, and it has been previously reported that the Japanese carmaker was not in favour of UMW’s move. Existing shareholders in Perodua also have the first right of refusal in the event an existing shareholder wishes to exit.