There’s plenty of reasons why a company would need to suspend their stock market. But for Sime Darby, it seems to be tentative good news. Apparently, Sime Darby Motors and Perodua will be undergoing a merge!Earlier today, news agency Reuters revealed that Permodalan Nasional Bhd is considering a potential merger with Sime Darby’s automotive subsidiary Sime Darby Motors and Perusahaan Otomobil Kedua Sdn Bhd .
The news seemed to have merit as around 2:30pm today, Sime Darby filed a request with Bursa Malaysia to suspend trading in their shares and structured warrants linked to their stock. Reuters claimed Sime Darby Bhd shares were up 0.5% before the trading halt. It was later revealed that the company had entered a conditional sale and purchase agreement with PNB to acquire their 61.2% stake in UMW Holdings Bhd for RM5.00 per share or RM3.57 billion. Reportedly, Sime Darby will be following up on the agreement with a mandatory general offer for the remaining 38.8% stake not held by PNB, to delist UMW from Bursa Malaysia.
strengthen Sime Darby’s presence in the Malaysian automotive sector by adding two highly performing brands into Malaysian portfolio – Toyota and PeroduaAs some may know, UMW has a 51% stake in UMW Toyota Motor and 38% stake in Perodua. Additionally, PNB is the biggest shareholder in both Sime Darby Bhd and UMW. As such, some claim this is a consolidation move by the state investment firm.