SHAH ALAM, 4 May 2017– UMW Holdings Berhad (“UMWH”) has received shareholder approval to demerge from UMW Oil & Gas Corporation Berhad (“UMWOG”). Shareholders voted and approved the resolution for the demerger exercise at UMWH’s Extraordinary General Meeting (EGM) this morning.
On 19 January 2017, UMWH announced its plans to exit the Oil & Gas sector through the “distribution in specie” of all its shares in UMWOG to all entitled shareholders of UMWH.Following its exit from the Oil & Gas sector, UMWH’s activities will be focussed on its core businesses of Automotive, Equipment and Manufacturing & Engineering which offer the best potential for growth and will deliver enhanced value for shareholders.
President and Group Chief Executive Officer of UMWH, Badrul Feisal bin Abdul Rahim, said: “Our shareholders’ approval for the exercise is a strong vote of confidence for the company’s plans on the proposed corporate exercise. This will then allow us to refocus on our core businesses, particularly in view of the attractive long-term growth prospects across these three core businesses.”
“Moving forward, not only will the Group’s earnings and profitability stabilise, our improved financial position and flexibility will allow us to optimise resources and embark on investments in these core areas of businesses as its platform for future expansion and value creation.”During the EGM, shareholders also approved the resolution to reduce the Group’s issued and paid-up capital. The capital reduction will improve the Group’s financial position and will have no impact on the company’s earnings and earnings per share (EPS).