Sime Darby Acquisition Drives UMW Shares to 4-Year High

<p>&nbsp;UMW Holdings Bhd jumped to a four-year high following reports of a takeover by Sime Darby Bhd.</p><p><br /></p><p>Earlier, Sime Darby was reported to have made an offer to buy Permodalan Nasional Bhd's (PNB) stake in the company at a value of RM3.57 billion.</p><p><br /></p><p>This makes it one of the largest merger and acquisition deals in the country, which will strategically transform Sime Darby into a leading automotive player in Malaysia.</p><p><br /></p><p>UMW was among the top gainers in early trading today, rising 3.9% or 18 sen to RM4.80, with a market capitalization of RM5.61 billion.</p><p><br /></p><p><br /></p><p>Group Chief Executive Officer Datuk Jeffri Salim Davidson said the acquisition would complement Sime Darby's existing premium-to-luxury portfolio, namely BMW, Rolls-Royce and Porsche.</p><p><br /></p><p>In addition, it will also allow Sime Darby to access the Toyota ecosystem and add another brand, thus creating new opportunities for the group to grow.</p><p><br /></p><p>Meanwhile, analysts said the minority should accept the offer if the deal becomes unconditional, which would delist UMW from Bursa Malaysia.</p><p><br /></p><p>A mandatory general offer (MGO) was launched by Sime Darby to buy the remaining 38.82% shareholding and take UMW private.</p><p><br /></p><p>MGO is expected to cost about RM2.27 billion, Sime Darby said in a Bursa Malaysia filing.</p>