KUALA LUMPUR, 31 October 2018 – In March 2018, UMW Holdings Berhad (UMWH) announced the following:

– Proposed acquisition of 50.07% equity interest in MBM Resources Berhad (MBMR) and the resultant proposed mandatory take-over offer;

– Proposed acquisition of 10.00% equity interest in Perusahaan Otomobil Kedua Sdn Bhd (Perodua); and

– Proposed renounceable rights issue of new ordinary shares in UMWH to raise gross proceeds of up to RM1.1 billion.

UMWH wishes to announce that the Board has decided to allow the MBMR Offer and Perodua Offer to lapse and not to further extend the period for the MBMR Offer and Perodua Offer. With the lapse of both the MBMR Offer and Perodua Offer, the company will not be pursuing the proposed acquisitions, proposed mandatory take-over offer and proposed rights issue.

“Given the current business environment, we have recalibrated our corporate strategy in line with our on-going transformation efforts and will focus on improving our financial performance. We would like to reaffirm our commitment to enhancing the performance of our automotive segment, expanding further into high-value manufacturing as well as increasing our product range and market presence for our equipment segment. We believe this will further strengthen our overall financial position, which will enable us to remain resilient in the increasingly challenging business environment,” said Badrul Feisal Abdul Rahim, President & Group CEO, UMW Holdings Berhad.

“Nevertheless, we remain optimistic in exploring opportunities in the domestic market as well as expanding our global footprints. We are confident that the transformation efforts we have undertaken in the past few years will continue to benefit our shareholders and contribute positively to the overall growth of the Malaysian economy.”