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PNB supports UMW’S to consolidate its oil & gas unit

Friday, 23 December 2016

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KUALA LUMPUR: Permodalan Nasional Bhd (PNB), which holds a 58.19% stake in UMW Holdings Bhd, is willing to support the company’s plans to consolidate its oil and gas (O&G) unit with other players within the industry if the need arises.

PNB group chief executive officer Datuk Abdul Rahman Ahmad said the consolidation might be an opportunity for UMW, as it could help the company withstand the challenges within the O&G industry.

“However, it is not that easy to do. And I guess that is the reason why there has not been any consolidation until now because of challenges, namely different shareholder requirements and needs,” he told reporters after announcing the income distribution of Amanah Saham Bumiputera and Amanah Saham Nasional here yesterday.

UMW Oil and Gas Corp Bhd’s shares were among those that were badly hit as a result of slumping oil prices.

UMW is an industrial enterprise with diverse and global interests in the automotive, equipment, manufacturing, and oil and gas sectors.

Asked if there were O&G companies expressing interest to consolidate their units with UMW Holdings, he said, “not yet”.

Similarly, the automotive industry, which UMW is also active in, is also affected by the economic uncertainty.

UMW assembles and distributes passenger and commercial vehicles, including Toyota and Perodua.

Source by: Internet

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