Sime Darby offers to take over UMW Holdings

KUALA LUMPUR: Sime Darby Bhd has offered to take over UMW Holdings Bhd, and to eventually delist UMW from Bursa.

In a statement, Sime Darby said it had inked a deal to buy Permodalan Nasional Bhd's (PNB) 61.2% stake in UMW for RM3.57bil cash or RM5 per share.

Once the deal becomes unconditional, Sime Darby will make a general offer for the remaining 38.8% stake that it does not hold in UMW.

Sime Darby is a conglomerate with businesses in the automotive, industrial equipment and healthcare sectors.

Meanwhile, UMW is a conglomerate with businesses including automotive, equipment, aerospace and manufacturing & engineering (M&E) segments.

“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, Sime Darby’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.

Sime Darby said the acquisition is accretive to its earnings per share and will enhance shareholders' return.

Sime Darby expects the acquisition of PNB’s stake to be completed within the next three months.
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