Concerns on Perodua’s tech partner baseless

This article first appeared in The Edge Financial Daily, on April 27, 2018.
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KUALA LUMPUR: Perusahaan Otomobil Kedua Sdn Bhd (Perodua) said the concerns surrounding its technological partner Daihatsu Motor Corp amid UMW Holdings Bhd’s takeover of MBM Resources Bhd (MBMR) are unfounded, adding that it is business as usual for the carmaker.

Perodua president and chief executive officer (CEO) Datuk Aminar Rashid Salleh said the parties involved should have already discussed this issue and should be able to come to a solution, and that it should be nothing to worry about.

“There should not be any concerns on Daihatsu. I’m sure the shareholders can sort the issues out among themselves. For us at Perodua, it is still business as usual and whatever the shareholders decide, we will respect their decision,” he told The Edge Financial Daily on the sidelines of the Malaysia Autoshow 2018 yesterday.

He said Perodua is progressing in line with its five-year plan for the 2017-2021 period, Transformation 2.0, which should strengthen the carmaker’s performance going forward.

Daihatsu is seen as a hurdle for UMW to take majority control of MBMR, as the Japanese carmaker had expressed displeasure late last month over how the takeover bid was conducted.

It had also said it may review its relationship with Perodua, implying that technological transfer, among others, may come under jeopardy.

UMW had offered RM2.56 per share for the MBMR shares held by Med-Bumikar Mara Sdn Bhd but the latter’s board voted to reject the offer upon advice from its bankers, as the offer undervalues the stake.

UMW currently holds a 38% stake in Perodua, while MBMR owns 22.58%. Other shareholders in Perodua are Daihatsu (30% stake) and UMW’s majority shareholder Permodalan Nasional Bhd (10% stake).