Bursa Malaysia rejects EPF’s request for waiver in Sime Darby and UMW merger deal

BURSA Malaysia has rejected the Employees Provident Fund (EPF)’s request for a waiver in the RM3.57 billion merger deal between Sime Darby Bhd and UMW Holdings Bhd.

As a result, EPF is required to abstain from voting on resolutions pertaining to their shareholdings in Sime Darby during the extraordinary general meeting (EGM).

EPF is considered connected to Permodalan Nasional Bhd (PNB) due to a joint venture between the two, with EPF owning a 15.23% stake in Sime Darby and 10.05% in UMW, while PNB holds a 5.11% stake in Sime Darby and 37.73% via Amanah Saham Bumiputera.

The merger involves Sime Darby purchasing PNB’s entire 61.18% stake in UMW at RM5 per share (RM3.57 billion), followed by a mandatory general offer (MGO) to buy the remaining 38.82% stake (around RM2.27 billion) for the delisting of UMW.

The acquisition is expected to be finalised by the fourth quarter of this year, with CIMB Investment Bank Bhd as the principal adviser and AmInvestment Bank Bhd acting as the independent adviser.

Sime Darby’s shares closed at RM2.33 today, with a market capitalisation of RM15.88 billion, while UMW settled at RM4.86, valuing it at RM5.68 billion. – TMR