KL in US$1b takeover bid<\/p>\n
KUALA LUMPUR (AFP): The Malaysian government on Monday
\nannounced a takeover bid worth almost $1 billion for a unit of
\nthe country's most indebted conglomerate Renong Bhd -- the first
\nstep in taking control of the entire group.<\/p>\n
Khazanah Nasional Bhd, the government investment arm,
\nannounced an offer for all shares in United Engineers Malaysia
\nBhd (UEM) at 4.50 ringgit (US$1.18) a share.<\/p>\n
If the takeover is successful, construction giant UEM will be
\ntaken off the Kuala Lumpur Stock Exchange (KLSE).<\/p>\n
UEM has a 32.6 percent stake in Renong, which in turn has a
\n37.1 percent stake in UEM.<\/p>\n
Renong, once the investment arm for Prime Minister Mahathir
\nMohamad's ruling party, has some 13 billion ringgit in
\noutstanding group debt.<\/p>\n
It has interests in banks, toll roads, oil and gasfields and
\nreal estate and is Malaysia's most debt-burdened conglomerate as
\nwell as one of the largest.<\/p>\n
Its massive debt burden has been a major deterrent to
\nMalaysian efforts to attract foreign investors into its stock
\nmarket.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kl-in-us1b-takeover-bid-1447893297",
"image": ""
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