Sime Darby to acquire UMW – Perodua and UMW Toyota Motor included

In a statement released today, Sime Darby announced that it will acquire Permodalan Nasional Berhad (PNB)’s 61.2% stake in UMW Holding Berhad. The conditional share purchase agreement will provide Sime Darby with UMW’s diverse portfolio which includes the automotive segment. And this includes UMW Toyota Motor and Perodua.

Under the terms of the agreement, the 61.2% stake will be purchased by Sime Darby for a total cash consideration of RM3.57 billion or RM 5.00 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.

Sime Darby Berhad’s Group Chief Executive Officer, Dato’ Jeffri Salim Davidson said, “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.

“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.”

As for the acquisition of UMW Toyota Motor and Perodua, UMW Holdings holds a 51% stake in UMW Toyota and a 38% stake in Perodua. As such, Sime Darby’s ownership will also be of the same percentage.

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The acquisition is accretive to Sime Darby’s earnings per share and will enhance Sime Darby’s shareholders’ return. Sime Darby 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.

Automotive brands in Malaysia under Sime Darby currently include Hyundai, Porsche, Jaguar Land Rover, and BYD. With the new deal, Perodua and Toyota will soon join too.

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