Monday, October 4, 2010

MMC-led consortium submits takeover proposal for UEM

MMC Corp, the flagship company of Malaysian billionaire Syed Mokhtar Al-Bukhary, said it’s leading a consortium that wants to buy UEM Group Bhd, a government- linked company with assets ranging from toll roads to technology.

“MMC has submitted a preliminary proposal to the government for the acquisition of UEM Group and has not received any indication on our proposal as yet,” the Kuala Lumpur-based power and construction company said in an exchange filing today.

UEM Group’s holdings include stakes in highway operator PLUS Expressways Bhd, Faber Group Bhd, UEM Land Holdings Bhd and Time Engineering Bhd MMC’s statement was issued after a report in the Edge Malaysia newspaper that an MMC consortium was planning a RM15.6 billion (US$5 billion) offer to buy UEM from state investment company Khazanah Nasional Bhd. MMC wanted to acquire UEM’s 38.5 per cent stake in PLUS, the report said.

MMC has yet to approach the Employees Provident Fund or Permodalan Nasional Bhd, two other state-linked agencies, about becoming potential bid partners for UEM Group, according to today’s statement.

MMC shares rose 2.6 per cent to close at a 27-month high of RM3.20 in Kuala Lumpur trading today. MMC is the fifth- best performer on the FTSE Bursa Malaysia KLCI Index this year, having gained 32 per cent.

UEM Group Chief Executive Officer Izzaddin Idris said on October 1 that he hadn’t been made aware of any takeover offer from MMC. From communications with Khazanah, there was “no indication” that the wealth fund was looking to sell UEM Group, Izzaddin told reporters in Kuala Lumpur that day.

UEM Group, previously controlled by the country’s ruling political party, had total assets of RM31.1 billion as at December 31, 2009, according to the Edge report. -- Bloomberg



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