MARC Ratings has extended its MARCWatch Developing on UMW Holdings Berhad’s (UMW) sukuk programmes, where the ratings have been placed since August 25, 2023. The rating action was based on the then proposed changes to UMW’s shareholding structure. This relates to the proposed sale of Permodalan Nasional Berhad’s (PNB) 61.18% equity stake in UMW to Sime Darby Enterprise Sdn Bhd (SDESB), a wholly-owned subsidiary of Sime Darby Berhad, for RM3.57 billion.
The rating agency notes the progress that has been made towards completing the transaction. During an extraordinary general meeting (EGM) on November 16, 2023, the shareholders of Sime Darby have approved the proposed acquisition. The EGM also approved a subsequent mandatory general offer for the remaining stake of 38.82% in UMW.
The MARCWatch extension considers the ongoing exercises related to the sale of PNB’s stake in UMW which is expected to be completed by end-November 2023. The MARCWatch will be resolved upon full assessment of the impact on UMW’s credit profile following the change in shareholding structure.
UMW has a RM2.0 billion Islamic Medium-Term Notes Programme (Sukuk Musharakah) and a RM2.0 billion Perpetual Sukuk Programme on which MARC Ratings had affirmed its AA+IS and AA-IS ratings with a stable outlook in July 2023. The current outstanding under the rated programmes are RM1.25 billion Sukuk Musharakah and RM1.1 billion Perpetual Sukuk.