UMW Holdings aborts RM1b plan to acquire stake in MBM Resources and Perodua

KUALA LUMPUR: UMW Holdings Bhd has aborted its RM1 billion plan to acquire a 50.07 per cent stake in MBM Resources Bhd and a 10 per cent stake in Perodua.

The company, in a filing to Bursa Malaysia today, said it had decided not to further extend the period for MBM Resources and Perodua offers, allowing the offers to lapse.

“With the lapse of both offers, the company will not be pursuing the proposed acquisitions, proposed mandatory takeover offer and proposed rights issue,” it said.

UMW offered RM2.56 per share to Med-Bumikar Mara Sdn Bhd for the latter’s 50.07 per cent stake in MBM Resources.

The price tag amounts to RM501 million, valuing MBM Resources at RM1 billion or 16.36 per cent higher than its market value when the offer was announced on March 9.

If Med-Bumikar were to accept it, UMW would be required to undertake a mandatory general offer and intended to take MBM Resources private.

In April this year, UMW extended the validity of its takeover offer for control over MBM Resources for another six months.

UMW was also planning to acquire PNB Equity Resource Corp Sdn Bhd’s (PERC) 10 per cent stake in Perodua for RM417.5 million.

PERC is wholly owned by Permodalan Nasional Bhd.

The MBM Resources and PERC acquisitions would have raised UMW’s stake in Perodua from the current 38 per cent to 70.6 per cent.

Source: NST