Med-Bumikar minorities walk out as EGM votes to sell

Med-Bumikar minorities walk out as EGM votes to sell
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KUALA LUMPUR (April 30): Disgruntled minority shareholders of Med-Bumikar Mara Sdn Bhd staged a walkout today as the remaining shareholders voted to sell its 50.07% stake in listed auto group MBM Resources Bhd (MBMR) to UMW Holdings Bhd.

Sources told that the extraordinary general meeting (EGM) was convened as scheduled, but its validity was questioned by the minorities who had opposed to the proposed sale.

Details are scarce but the dissenting shareholders, accounting for 48% of Med-Bumikar's shareholding, then walked out, led by executive chairman Datuk Abdul Rahim Abdul Halim.

It is learnt that the remaining shareholders collectively holding 52% of Med-Bumikar's outstanding shares proceeded to vote in favour of the proposed sale.

From that figure, 29% is held by Majlis Amanah Rakyat while the rest are split between the Looi and Wong families.

The dissenting shareholders comprise four other families, each controlling approximately between 11% and 13%.

Last Wednesday, the dissenting shareholders saw their application for an injunction against the EGM dismissed by the Kuala Lumpur High Court.

If the EGM vote is upheld, it would see UMW gaining a majority stake in MBMR. At RM2.56 per share, the acquisition from Med-Bumikar would cost UMW some RM501 million and values MBMR at RM1 billion.

At stake is ultimate control over privately-held national carmaker, Perusahaan Otomobil Kedua Sdn Bhd (Perodua). UMW has a 38% stake in Perodua, while MBMR has another 22.58%.

If UMW successfully acquires control over MBMR, UMW would then be able to exercise majority control over Perodua.

UMW previously said it intends to undertake a mandatory general offer at the same price to privatise MBMR.

However, Perodua's Japanese partner and 30% shareholder, Daihatsu Motor Co Ltd, may be able to block the manoeuvre as existing Perodua shareholders have the right of first refusal should any other shareholder wishes to sell.

The Edge Malaysia had previously reported that Daihatsu was unhappy over the proposed takeover.

At 3.38pm, MBMR shares were unchanged at RM2.39 — 17 sen below UMW's offer price.

At 3.42pm, UMW shares were traded at RM6.11 per share, down 4 sen.