EUROPEAN automaker UMW Holding Bhd is planning to gain control of Perusahaan Otomobil Kedua Sdn Bhd (Perodua) for RM501.04 million.

In a filing with Bursa Malaysia, UMW plans to acquire a 50.07% stake in MBM Resources Bhd (MBMR) for RM2.56 per share.

“The proposals will allow UMW Holdings to increase its strategic stake in Perodua, which continues to be the leading marque in Malaysia with successful recent launches,” UMW said.

MBMR currently plays a role in the dealership and distribution of Perodua as well as other international and local vehicle brands and automotive parts.

The 50.07% stake in MBMR will be from Med-Bumikar Mara Sdn Bhd (49.5%) and Central Shore Sdn Bhd (0.57%).

The offer values MBMR – which owns a 22.58% effective equity interest in Perodua – at RM1 billion.

UMW further plans to strengthen its hold on Perodua after the MBMR deal by offering PNB Equity Resources Sdn Bhd’s RM417.5 million for its 10% stake in Perodua.

“After the completion of the proposed MBMR acquisition and assuming full acceptance of the Proposed MO, the company’s effective interest in Perodua will increase from 38% to 60.6%, which will further increase to 70.6% after the completion of the proposed Perodua acquisition,” UMW said.

The deal would value Perodua at RM4.175 billion.

The offer for acceptances for both proposals closes on March 28. ­– March 10, 2018.