Sime Darby to acquire UMW, majority stakeholder in Perodua, Toyota; forms Malaysia’s largest auto group

Sime Darby Berhad today announced that it has entered into a conditional sale and purchase agreement with Permodalan Nasional Berhad (PNB) to acquire the latter’s 61.2% stake in UMW Holdings Berhad for RM3.57 billion in cash, or RM5.00 per share. Sime Darby’s next step is to make a mandatory general offer for the remaining 38.8% stake that it does not hold, with the aim of delisting UMW from from Bursa Malaysia.

This is news of seismic proportions for Malaysia’s automotive industry, as SD, via its Sime Darby Motors division, is a major player in the industry, a franchise holder for brands ranging from Porsche to BYD. UMW on the other hand, is the majority stakeholder in market leader Perodua as well as Toyota, currently the top non-national make by overall sales. It also distributes Lexus vehicles. Soon, all will be under a giant umbrella.

“This is a strategic move to further scale up and strengthen our presence in the Malaysian automotive sector, adding two highly performing brands into our Malaysian portfolio – Toyota and Perodua. The deal will cement Sime Darby’s position as Malaysia’s leading automotive player,” said Datuk Jeffri Salim Davidson, SD’s group CEO.

“As a partner of choice to some of the most admired brands in the automotive sector, we are very excited to have the opportunity to work with Toyota, one of the world’s largest and most respected automakers,” he added.

UMW holds 51% stake in UMW Toyota Motor as well as 38% stake in Perodua. PNB has a direct 10% direct stake in the makers of the Myvi, whose other shareholders include technical partner Daihatsu, MBM Resources and Mitsui & Co. By the way, PNB is the biggest shareholder in both SD and UMW, so this also is consolidation move by the state investment firm.

Sime Darby expects the acquisition of PNB’s UMW stake to be completed within three months from the date of SPA, subject to regulatory and shareholders’ approval, the latter via an EGM in November.

GALLERY: Sime Darby Motors City, Ara Damansara

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