UBG/CMSB...Jan10

The company and two of its subsidiaries have yet to receive any notice of takeover from PetroSaudi International Ltd (PSI), or its nominees, pursuant to the Malaysian Code on Takeovers and Mergers.

It was informed by shareholders, CMS Group and Majestic Masterpiece Sdn Bhd (MMSB), that the proposed acquisitions by PetroSaudi of stakes in UBG had yet to be completed.

It was given to understand through media reports that PSI planned to privatise and delist UBG once it has completed the acquisitions and to also take over and delist its subsidiaries, namely, Putrajaya Perdana Bhd and Loh & Loh Corporation Bhd.
CMS holds a 37.21 per cent equity interest in UBG through wholly-owned Concordance Holdings Sdn Bhd (28.29 per cent) and its 51-per cent subsidiary PPES Works (Sarawak) Sdn Bhd (8.92 per cent). Meanwhile, MMSB, a wholly-owned subsidiary of Abu Dhabi-Kuwait-Malaysia Investment Corp, holds a 52.62 per cent stake in UBG.

It was reported that PSI had on Dec 29, 2009, offered to acquire all the shares in UBG currently held by MMSB, Concordance Holdings and PPES Works for RM2.50 apiece.

The completion of these acquisitions would result in PSI holding more than 33 per cent of UBG shares and trigger a mandatory general offer for all the shares not already owned by PetroSaudi.

PSI had said the entire exercise, scheduled to be completed by first quarter of 2010, would cost about RM1.4 billion.

This investment is its second foray in the region after a US$2.5 billion joint-venture with 1Malaysia Development Bhd.

Meanwhile, UBG, through its subsidiaries, is involved in building and civil construction and mechanical and electrical engineering-related activities in Malaysia.