30/10/2023 (Malaysia) - Sime Darby Bhd's significant increase in market share from a mere 3% to a robust 55% has positioned the conglomerate as a dominant player in Malaysia's automotive sector.
Group Chief Financial Officer of Sime Darby, Mustamir Mohamad, in a statement to Berita Harian, that with the company holding over half of Malaysia's automotive market share, they're keen on leveraging this enhanced position to create broader market opportunities and a larger customer base. He added, "This will also unlock potential revenue growth and operational efficiency."
Discussing shareholder benefits, Mohamad anticipates a positive impact on Sime Darby's Earnings Per Share (EPS) and improved returns for shareholders of Pemodalan Nasional Bhd (PNB). He revealed that through Sime Darby's acquisition of a 61.2% stake in UMW Holdings Bhd from PNB, the company is set to play a bigger role in the nation's automotive growth.
“We are particularly excited about welcoming two of Malaysia's leading brands, Toyota and Perodua, into the Sime Darby ecosystem,” Mohamad told reporters. “With our extensive experience in the automotive sector, we are well-positioned to further develop and fortify Toyota and Perodua's businesses in Malaysia."
Last August, Sime Darby entered into a conditional share purchase agreement to acquire PNB's 61.2% stake in UMW Holdings Bhd. As per the agreement's terms, Sime Darby will buy this stake for a total cash payment of RM3.57 billion, translating to RM5.00 per share. A subsequent statement from Sime Darby indicated that once this acquisition is finalized, they would make a public offer for the remaining 38.8% shares, aiming to delist UMW from Bursa Malaysia.
Both Sime Darby and UMW Holdings fall under the strategic umbrella of PNB companies. PNB, which manages assets exceeding RM300 billion, holds a significant interest in both Sime Darby and Perusahaan Otomobil Kedua Sdn Bhd (PERODUA).