Sime Darby extends closing date for UMW's takeover to Jan 31

Monday 18 Nov 2024

KUALA LUMPUR (Jan 12): Sime Darby Bhd is extending the closing date for its RM5 per share offer to take UMW Holdings Bhd private to Jan 31, about two weeks later than the original deadline of Jan 17.

Sime Darby has already accumulated 94.15% of UMW’s total issued shares as on Friday. The extended closing date is to allow more time for the holders to accept the offer, CIMB Investment Bank Bhd said in a statement on behalf of Sime Darby.

Announced in August last year, the merger involves Sime Darby buying a 61.18% stake in UMW from its parent company Permodalan Nasional Bhd (PNB) at RM5 per share or RM3.57 billion, followed by a mandatory general offer to buy the remaining 38.82% stake at about RM2.27 billion.

PNB owns a 5.11% stake in Sime Darby and is deemed to have a 37.46% interest via Amanah Saham Bumiputera.

Sime Darby, which is known for its luxury marques such as BMW, Jaguar, Land Rover and Porsche, will add mass market brands under UMW, such as Toyota, Lexus and Perodua, to its stable.

Last week, Kenanga Investment Bank Bhd said the unconditional mandatory takeover offer by Sime Darby Bhd to acquire the remaining shares in UMW Holdings Bhd at RM5 per share is “not fair but reasonable”.

The deal is deemed not fair by the independent adviser as it is a discount of 60.8 sen — RM1.017 or 10.84% — 16.9% to the estimated value of between RM5.608 and RM6.017 per UMW share, based on a sum-of-parts valuation. But the offer is seen as reasonable as Sime does not intend to maintain UMW's listing status.

Sime Darby, which has appreciated 15.6% since the deal announcement on Aug 24, closed one sen or 0.41% higher at RM2.44 on Friday, giving the group a market capitalisation of RM16.63 billion.

Shares in UMW settled unchanged at RM5, valuing the stock at RM5.84 billion.

Edited ByTan Choe Choe

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