Sime Darby gains shareholder nod for UMW acquisition

In a significant move, Sime Darby Berhad, a leading Malaysian conglomerate, received overwhelming shareholder support at an Extraordinary General Meeting (EGM) for its strategic acquisition of a majority stake in UMW Holdings Berhad.

The EGM, held recently, saw shareholders vote in favor of Sime Darby’s proposal to acquire a 61.2% stake in UMW from Permodalan Nasional Berhad (PNB). This approval paves the way for Sime Darby to launch a mandatory general offer (MGO) for the remaining shares of UMW, aiming for complete ownership.

Following the EGM, UMW shareholders will receive detailed documentation regarding the MGO, which is anticipated to conclude by February 2024, assuming a full extension of the acceptance period.

This move by Sime Darby, announced on August 24, 2023 through a conditional share purchase agreement with PNB, signifies a strategic step in strengthening its market position in various sectors.

Group Chief Executive Officer of Sime Darby, Dato’ Jeffri Salim Davidson, expressed his gratitude for the shareholder support, stating, “This approval reflects our shareholders’ alignment with our vision to expand our automotive sector in Malaysia. We are committed to delivering continued value to our shareholders.”

The acquisition, expected to be finalised by the end of November 2023, marks a significant expansion for Sime Darby in the automotive sector. UMW, a well-established conglomerate, boasts a diverse portfolio, including automotive, equipment, aerospace, and manufacturing & engineering segments.

In the lubricants sector, UMW Holdings Berhad has different subsidiaries or divisions focusing on specific aspects of the lubricants business:

• UMW Lubricant International Sdn Bhd (REPSOL): This subsidiary is responsible for the distribution and marketing of Repsol-branded lubricants. It represents UMW Holdings Berhad’s partnership with Spain’s Repsol, a global energy company, in the lubricants sector.
• UMW Grantt International Sdn Bhd (GRANTT): This is another subsidiary of UMW Holdings Berhad. It was incorporated into the UMW family in 2014 and focuses on producing and marketing the Grantt brand of lubricants. Grantt has become a well-known lubricant brand in the market.
• Lubricants – UMW Holdings: This refers to the overall lubricants business division within UMW Holdings Berhad. It encompasses the various lubricant brands and products that the company blends, markets, and distributes, including partnerships with other brands like Pennzoil and Repsol, as well as their own in-house brand, Grantt.

Each of these subsidiaries or divisions plays a distinct role in UMW Holdings Berhad’s lubricants business, contributing to its diversity and reach in the market.