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UMW plans to list O&G unit on Main Market

UMW Holdings Bhd has proposed to list its oil and gas (O&G) unit, UMW Oil & Gas Corp Bhd (UMW-OG), on Bursa Malaysia’s Main Market.

The proposed initial public offering (IPO) is for up to 843.18 million shares of 50 sen each in UMW-OG. A total of 611.8 million shares will be made available to retail and institutional investors. The institutional offering involves the offer of up to 648.6 million shares, representing 30% of the enlarged issued and paid-up share capital of UMW-OG. The price of the institutional offer will be determined by a book-building exercise.

Meanwhile, 194.58 million IPO shares will be made available for retail investors at a yet-to-be-determined price, representing 9% of the enlarged issued and paid-up share capital of UMW-OG.

UMW-OG is involved in the upstream sector of the O&G industry, providing offshore drilling and oilfield services, including engineering and maintenance services.

Prior to listing, the company will undertake an internal reorganisation exercise involving the transfer of the offshore drilling business and certain companies in the oilfield services division under UMW and its subsidiaries to UMW-OG.

The latter entered into sale and purchase agreements on May 14, 2013 in relation to the internal reorganisation. The listing of and quotation for its entire enlarged issued and paid-up share capital of RM1.081bil comprises 2.162 billion UMW-OG shares on Bursa’s Main Market.

“The proposed listing of UMW-OG is a key strategic initiative by UMW, which is expected to accelerate the growth of the O&G business within the UMW group and enable UMW to unlock and crystallise the value of its investment in the UMW-OG group and enhance the shareholders’ value at UMW level,” said UMW president and group chief executive officer Datuk Syed Hisham Syed Wazir in a statement. The proceeds from the IPO will assist it in reducing its existing borrowings.

Maybank Investment Bank Bhd and CIMB Investment Bank Bhd have been appointed as the joint-principal advisers to UMW and UMW-OG for the proposals.

UMW expects the proposals to be completed by the fourth quarter of 2013.

(Source: thestar online – Business)

UMW on track to list O&G assets

Type
Announcement
Subject
OTHERS
Description
UMW HOLDINGS BERHAD (“UMWH”)
PROPOSED LISTING OF UMW OIL & GAS CORPORATION BERHAD (“UMW-OG”), A WHOLLY-OWNED SUBSIDIARY OF UMWH, ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD (“PROPOSED LISTING”)
On behalf of the Board of Directors of UMWH, Maybank Investment Bank Berhad and CIMB Investment Bank Berhad are pleased to announce that UMWH proposes to list its wholly-owned subsidiary, UMW-OG, on the Main Market of Bursa Malaysia Securities Berhad.
This announcement is dated 16 May 2013.
Attachments
UMWH – Proposed Listing.pdf

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