Sime Darby Berhad announced that it has entered into a conditional sale and purchase agreement with Permodalan
Nasional Berhad to acquire PNB’s 61.2% stake in UMW Holdings Berhad for RM3.57 billion.
UMW, is a well-established conglomerate with a diverse portfolio of businesses including automotive, equipment, aerospace, and manufacturing & engineering (M&E) segments. Under the terms of the agreement, Sime Darby will purchase PNB’s 61.2% stake for a total cash consideration of RM3.57 billion or RM5.00 per share. Once the agreement becomes unconditional, Sime Darby will be making a general offer for the remaining 38.8% stake that it does not hold with the aim of delisting UMW from Bursa Malaysia.
“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 Dato’ Jeffri Salim Davidson, Sime Darby Berhad’s Group Chief Executive Officer.
“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.”
The acquisition is accretive to Sime Darby’s earnings per share and will enhance Sime Darby’s shareholders return it said. The group expects the acquisition of PNB’s stake to be completed within 3 months from the date of SPA subject to regulatory and shareholders’ approvals and customary closing conditions.
