KL in US$1b takeover bid

KL in US$1b takeover bid

KUALA LUMPUR (AFP): The Malaysian government on Monday
announced a takeover bid worth almost $1 billion for a unit of
the country's most indebted conglomerate Renong Bhd -- the first
step in taking control of the entire group.

Khazanah Nasional Bhd, the government investment arm,
announced an offer for all shares in United Engineers Malaysia
Bhd (UEM) at 4.50 ringgit (US$1.18) a share.

If the takeover is successful, construction giant UEM will be
taken off the Kuala Lumpur Stock Exchange (KLSE).

UEM has a 32.6 percent stake in Renong, which in turn has a
37.1 percent stake in UEM.

Renong, once the investment arm for Prime Minister Mahathir
Mohamad's ruling party, has some 13 billion ringgit in
outstanding group debt.

It has interests in banks, toll roads, oil and gasfields and
real estate and is Malaysia's most debt-burdened conglomerate as
well as one of the largest.

Its massive debt burden has been a major deterrent to
Malaysian efforts to attract foreign investors into its stock
market.