PETALING JAYA: The board of MBM Resources Bhd
(MBM) is expected to seek a higher price from UMW Corporation Bhd in the takeover offer for the former.
Sources said Med-Bumikar Mara Sdn Bhd, the major shareholders of MBM, is expected to communicate to the board of MBM to negotiate for a higher price than what is on the table at the moment.
On Monday, 52.06% of Med-Bumikar Mara shareholders voted in favour to accept the offer from UMW for its stake in MBM subject to certain requirements and conditions.
Medi-Bumikar Mara also recommended to the board of MBM to form a task force to negotiation with UMW, acting in the best interest of the company.
In March, UMW offered to buy Med-Bumikar Mara’s 50.07% in MBM at RM2.56 per share. Med-Bumikar Mara initially rejected the offer but the privately held company that is controlled by six families and MARA, agreed to the deal last Monday.
“One of the conditions for accepting the deal is for the board of MBM to negotiate for a higher price,” said a source.
Medi-Bumikar Mara’s representatives on the board of MBM is led by Datuk Abdul Rahim Abdul Halim, who is also the chairman of MBM.
Abdul Rahim is one of the persons responsible for the start of Perusahaan Otomobil Kedua Sdn Bhd (Perodua) and is well aware of the legal issues should any one party want to take up a substantial stake in the automotive company.
It has been reported that MARA and two other families holding 52.06% interest collectively in Med-Bumikar Mara called for an extraordinary shareholders meeting of the privately held company to push through the acceptance to UMW’s offer.
A source said that on the face, the impression was the remaining shareholders in Med-Bumikar Mara are not keen on the offer from UMW.
“That perception is not true. The remaining shareholders who come from four families are keen on accepting the offer from UMW. The only problem is they want to secure a higher price before agreeing and putting it to the board of MBM,” said a source.
The jewel in MBM is its direct 20% stake in Perodua. It also has another 2.5% indirect stake through a joint venture with Daihatsu of Japan.
UMW has extended by six months the offer period, by which time it has to get the consent from Perodua’s Japanese partners.
Apart from a substantial interest in Perodua, MBM also holds dealership for Mitsubishi, Volkswagen, Volvo, Daihatsu vehicles. It assembles and distributes Hino trucks that is used for commercial purposes.
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