UMW’s Proposed Takeover Of Perodua Stalled As MBMR Rejects Deal Offer

As predicted by several analysts including RHB Research, the shareholders of MBM Resources (MBMR) have voted to reject the much publicized takeover offer by UMW Holdings.

Both Med-Bumikar Mara Sdn Bhd and its wholly-owned subsidiary, Central Shore Sdn Bhd (CSSB), the two biggest shareholders of MBMR, have turned down the conditional offer made by UMW Holdings. The offer is worth about RM 501 million, in return for a 50.07 percent stake in MBMR.

At the same time, UMW Holdings has made a separate announcement to Bursa Malaysia that it will be extending its offer to MBMR from the previous deadline of 28-April 2018 to 30-April 2018.

To recap, UMW Holdings, whose subsidiary UMW Toyota Motor holds distributorship for Toyota (including local assembly) and Lexus vehicles in Malaysia, had on 9-March 2018 initiate a move to take control of Perodua by increasing its stake from the current 38 percent to 70.58 percent.

The conglomerate made an offer to purchase Med-Bumikar Mara Sdn Bhd and its wholly-owned subsidiary, Central Shore Sdn Bhd (CSSB)’s 50.07 percent stake in MBMR, which in turn holds 22.58 percent stake in Perodua. UMW Holdings had also made a separate offer to purchase the government-owned PNB Equity Resource Corporation Sdn. Bhd.’s 10 percent stake in Perodua for RM117.5 million.

Apart from Perodua, MBMR also holds the distributorship rights to Daihatsu and Hino, both Toyota-affiliated brands. MBMR owns 51.5 percent of commercial vehicles distributor Daihatsu (Malaysia) Sdn. Bhd. (DMSB) and 42 percent of Hino Motors Sales (Malaysia) Sdn. Bhd. (HMSM), plus 42 percent of lorry assembler Hino Motors Manufacturing (Malaysia) Sdn. Bhd. (HMMM).