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.
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Goodbye perodua!
Once gomen masuk campur with Perodua, it will be like Proton….condemn
why UMW dunwan P1… ohwaii
Why Proton failed was because gomen get Proton to take parts and suppliers/vendors from their “fren fren”.
“I friend you, I help you. Don’t worry”
Why Perodua was successful is becaus ePerodua take high quality parts from vendors who do open tender and are yearly evaluated for quality control
Perodua vendor = x
Proton vendor = x
Perodua method = y
Proton method =z
Vendor is same, method is different
Please Mr Kunta, refrain from adding Proton stories into EVERY other articles in this website. Have the dignity of being a proper commenter here. Cheers…
u are right bro. i am sicken by this type of people…..huh. so many entries with so many nicks… the stories are all the same.
Anything the Government touches will go bankrupt. Look at Proton. Look at Petronas. Eventhough Petronas is not bankrupt but it is sucked dry
really bruh? really? hv u seen few years back on petronas financial record?
at least hv a decency to simple google before commenting.. unless is ur job to spread malicious statements..
Really? Petronas is one of seven sisters dude. Stop this nonsense already
I think toyota order umw to get a chunck of the shares in perodua
Malaysia is a 3rd world country. We got no anti competition laws.
Government got stake in Proton through 51% ownership by DRB
Government got stake in Perodua through soon ownership by UMW
This does not happen in any other country in the world.
In Malaysia, Government can have ownership of two competing brands. How are they going to be neutral?
But when airasia wanted to own minority shares in mas the gov stopped it
Habislah Perodua
I don’t give a “F” about who own’s who or what. I just want a good/reliable small car that’s cheap to own. The Big question is – Can we get a cheaper car after all this ??!
After GE maybe
Fat hope bro! UMW is going to turn Perodua into UMW Toyota model company…
The smell of money. Cash is king.
I predict after UMW successfully hold a big share of P2, Perodua cars will become more expensive and the specification will be underspec. Now you can see how their lineup in Toyota cars. Useless spec with ridiculous pricing. This will be a goodbye to Perodua.
Perodua – People fighting to buy stakes because the company is running so well.
Proton – Selling stakes at dirt cheap because company is ailing and running on life support…. and now only capable of celebrating parent company’s achievement.
Who cares, pipu buy P2 pun coz it is cheap not because it is good
Why not? P2 dun cause problems like P1
You mean axlegate in alza? Or buy my I later pening coz cannot get 20.1km/l FC?
.. but pipu still don’t buy P1 though it is also cheap, why?
P1 is not cheap as P2
Avanza sales drop after Alza keluar and Vios sales drop after New myvi with dual vvti engine. Toyota car are reliable but the so called best services UMW service center repairing fees and spare parts price are super expensive. A not good sign for rakyat for the take over.
End of Perodua starts now…see how UMW screwed the people by supporting grey market importers of Toyota and now killing the biggest competitors…all these for cronies suppliers..
Jual aje la mcm jenama malaysia sangat….
Betul tu, nama je Malaysia, kalau tak sampai 20% local made!
how do you know? or just speculating? or just making stories? or another proton salesman?
kakakaka…very sick la you bro..
So after this Honda will be the no. 1 car brand in Malaysia.
Oh dont.. please. Perodua dont need umw!