UMW Holdings told not to engage key principals

PETALING JAYA: MBM Resources Bhd’s major shareholders Med-Bumikar Mara Sdn Bhd and Central Shore Sdn Bhd today warned against UMW Holdings Bhd engaging with its key principals, brand owners of the distributorship marque, after they reiterated their rejection of a takeover bid of RM2.56 per share from UMW.
MBM holds dealerships for Perodua, Mitsubishi, Volkswagen, Volvo, Daihatsu and Hino brands.
In a strongly worded filing made with the stock exchange, MBM said Med-Bumikar and Central Shore objected to UMW’s intended action to engage with their key principals on the merits of the proposed acquisition, saying the move may confuse or mislead their key principals and jeopardise their business contracts and/or relationship.
“Notwithstanding UMW’s purported attempt to extend the validity period of the offer, Med-Bumikar and Central Shore stand firm by their decision and would not reconsider the offer,” MBM said.
Med-Bumikar and Central Shore currently own a 50.07% stake in MBM and are a major stumbling block to UMW’s plans to take the company private.
“We wish to emphasise that there is no certainty that the offer will lead to any conclusive or definitive understanding between the parties. There is therefore no certainty that UMW will extend the proposed mandatory offer for all the remaining MBM shares not already owned by UMW and persons acting in concert with it, if any,” MBM said in its filing.
Last week, UWM said it is convinced that MBM shareholders will accept its offer with continued engagements in view of the “reasonableness” of the pricing.
UMW was to have increased its effective stake in Perodua to 70.6% from the current 38% upon completion of all the deals, including the offer for PNB Equity Resource Corp Sdn Bhd for its 10% stake in Perodua for RM417.5 million or RM29.80 per share.
UMW’s offer period for PNB’s shares have also been extended to April 30.
MBM’s share price fell 2 sen or 0.8% to close at RM2.43 today, while UMW declined 3 sen or 0.5% to RM6.10.