UMW Holdings Bhd jumped to a four-year high following reports of a takeover by Sime Darby Bhd.
Earlier, Sime Darby was reported to have made an offer to buy Permodalan Nasional Bhd's (PNB) stake in the company at a value of RM3.57 billion.
This makes it one of the largest merger and acquisition deals in the country, which will strategically transform Sime Darby into a leading automotive player in Malaysia.
UMW was among the top gainers in early trading today, rising 3.9% or 18 sen to RM4.80, with a market capitalization of RM5.61 billion.
Group Chief Executive Officer Datuk Jeffri Salim Davidson said the acquisition would complement Sime Darby's existing premium-to-luxury portfolio, namely BMW, Rolls-Royce and Porsche.
In addition, it will also allow Sime Darby to access the Toyota ecosystem and add another brand, thus creating new opportunities for the group to grow.
Meanwhile, analysts said the minority should accept the offer if the deal becomes unconditional, which would delist UMW from Bursa Malaysia.
A mandatory general offer (MGO) was launched by Sime Darby to buy the remaining 38.82% shareholding and take UMW private.
MGO is expected to cost about RM2.27 billion, Sime Darby said in a Bursa Malaysia filing.
