UMW extends offer for MBM Resources, Perodua till end-October

PETALING JAYA: UMW Holdings Bhd has extended its takeover offer period for MBM Resources Bhd and a 10% direct interest in Perusahaan Otomobil Kedua Sdn Bhd (Perodua) by six months, from April 30 till Oct 31.
This is despite MBM’s major shareholders Med-Bumikar Mara Sdn Bhd and Central Shore Sdn Bhd reiterating their rejection of the takeover bid for RM501 million or RM2.56 per share as it is “not reasonable”.
“In light of developments to date, the company has extended the MBM offer and the Perodua offer respectively to October 31, 2018, to enable parties to deliberate on the offers,” UMW said in a filing with Bursa Malaysia, noting that the proposed acquisitions of MBM and Perodua are not conditional upon each other.
Med-Bumikar and Central Shore, which collectively own a 50.07% stake in MBM, are a major stumbling block to UMW’s plans to take the company private. Earlier this month, they warned against UMW engaging with MBM’s key principals, or brand owners of the distributorship marque.
However, it was later reported that major shareholders of Med-Bumikar, including Majlis Amanah Rakyat, were keen to accept the offer.
UMW made a conditional offer to PNB Equity Resource Corporation Sdn Bhd (PERC) for its 10% equity interest in Perodua at RM417.5 million or RM29.80 per share. PERC has yet to respond to the offer.
On Bursa Malaysia last Friday, UMW rose 1.3% to RM6.15, while MBM fell 1.6% to RM2.39.