Meeting with PM sought over Perodua stake


Daihatsu Motor Co Ltd, the Japanese shareholder and technology partner of Perusahaan Otomobil Kedua Sdn Bhd (Perodua), wants to meet Prime Minister (PM) Tun Dr Mahathir Mohamad to resolve the UMW Holdings Bhd-MBM Resources Bhd takeover impasse.

UMW aims to acquire MBM Resources, which owns a stake in Perodua, and subsequently raise its shareholding in the country’s No 1 carmaker based on volume.

An industry source told The Malaysian Reserve that representatives from the Japanese firm had sought to meet the PM during his visit to Tokyo, but it could not be fulfilled due to Dr Mahathir’s tight schedule.

The source said Daihatsu will continue to seek a meeting with Dr Mahathir in Malaysia soon.

“Daihatsu is trying to have a meeting with Dr Mahathir here. They shall explain their position on UMW’s proposal,” the source said.

The source, who is close to the developments, claimed Daihatsu will object to the takeover proposal and will relay that to Dr Mahathir.

It is believed that Daihatsu’s rejection of the proposed takeover is due to the company not being in favour of UMW holding a majority stake in the carmaker.

Industry insiders said the proposed takeover could lead to Daihatsu pulling out from being Perodua’s technology partner.

UMW has made an offer to Med-Bumikar Mara Sdn Bhd and Central Shore Sdn Bhd to acquire their 50.07% combined stake in MBM Resources for RM501 million, or RM2.56 per share, that in turn will add UMW’s shareholding of Perodua by 22.58% via MBM Resources.

The initial offer was at a 30% discount of MBM Resources’ net tangible asset per share value of RM3.68.

UMW is also acquiring PNB Equity Resource Corp Sdn Bhd’s (PERC) 10% stake in Perodua for RM417.5 million.

MBM Resources and PERC’s acquisition will raise UMW’s stake in Perodua from the current 38% to 70.6%.

Presently, Perodua’s shareholdings are UMW (38%), MBM Resources (20%), PERC (10%), Daihatsu Motor (20%), Daihatsu (M) Sdn Bhd (5%), Mitsui Group (4.2%) and Mitsui & Co (Asia Pacific) Pte Ltd (2.8%).

According to the source, UMW’s proposal to bump up its stake in Perodua has been muted after the shocking 14th General Election (GE14) result and questions about the leadership at Permodalan Nasional Bhd (PNB) and Majlis Amanah Rakyat (Mara).

“Everyone is unsure now under the new government,” said the source. PNB is a major shareholder in UMW.

The acceptance of the proposal also hinges on the board control within Med-Bumikar itself.

Mara, which is the biggest and only shareholder of Med-Bumikar alongside six families, had previously filed a court application to challenge the validity of the appointment of Datuk Mohd Ridzuan Abdul Halim and Sharifuddin Shoib as additional directors.

Med-Bumikar as a company is challenging such a move with another legal action, as well as to nullify the acceptance of UMW’s proposal that was passed at the company’s last EGM in April.

The source said exchanges of affidavits have been delivered by Mara and Med-Bumikar and the applications are set to be heard in July.

UMW has extended its offer period for the proposed acquisition to Oct 31, 2018, from its initial date of April 30.