PNB supportive of UMW’s move on Perodua

KUALA LUMPUR: Permodalan Nasional Bhd (PNB) is supportive of its 58%-owned UMW Holdings Bhd’s move to become the largest stakeholder in Perusahaan Otomobil Kedua Sdn Bhd (Perodua) through proposed share acquisition exercises in MBM Resources Bhd and Perodua.

“We’re always supportive of any efforts to consolidate the operations,” PNB group chairman Tan Sri Abdul Wahid Omar told a media briefing at the release of PNB’s 2017 annual report today.

PNB has a 10% stake in Perodua via PNB Equity Resource Corp Sdn Bhd, which UMW offered to buy for RM417.5 million or RM29.80 per share.

UMW’s plan for a controlling stake in Perodua hit a snag after both MBM’s major shareholders Med-Bumikar Mara Sdn Bhd and its wholly owned subsidiary Central Shore Sdn Bhd rejected the takeover offer of RM501 million or RM2.56 per share. But UMW is convinced MBM shareholders will accept its offer with continued engagement and an extension of the offer period to April 30 in view of the “reasonableness” of the pricing.

Recall that UMW made an offer to Med-Bumikar and Central Shore for their 50.07% stake in MBM to tighten its grip on Perodua. Should they have cleared that hurdle, UMW was to have extended a mandatory offer and taken MBM private, increasing its stake in Perodua from 38% to 60.6%. If the offer to PNB is successful, that would have led to UMW owning a 70.6% stake in Perodua.