Sime Darby Receives Shareholder Greenlight To Acquire 61.2% Of UMW

Yesterday (16 November 2023) Sime Darby Berhad called an Extraordinary General Meeting (EGM) to seek shareholder approval for its proposal to acquire Permodalan Nasional Berhad (PNB) 61.2% of UMW Holdings Berhad and then launch a mandatory general offer (MGO) for the remaining UMW shares.

According to Sime Darby, shareholders approved the proposed resolution during the EGM, allowing Sime Darby to move forward with the strategic purchase. Having received this important permission, Sime Darby is certain that the deal will go through all the required approvals.

Sime Darby plans to start the MGO after the EGM in order to purchase the remaining UMW shares and eventually achieve complete ownership. Dato' Jeffri Salim Davidson, the Group Chief Executive Officer of Sime Darby further highlighted the alignment of vision is to  grow the automotive business in Malaysia and is satisfied with the support from shareholders.

In the coming weeks, UMW shareholders should expect to receive an offer document with more information about the MGO and the acquisition of the 61.2% ownership in UMW is expected to be completed by the end of November 2023. A fully extended acceptance time notwithstanding, the MGO is expected to conclude in February 2024.

Sime Darby had earlier disclosed on August 24, 2023, that it would be engaging into a conditional share purchase agreement (SPA) with PNB in order to acquire PNB's sizable interest in UMW.

UMW is acknowledged as a reputable corporation with a wide range of business divisions, such as manufacturing and engineering (M&E), equipment, automotive, and aerospace.