On today's Business Times:
- UMW may list unit by year-end
By Azlan Abu Bakar Published: 2010/05/12
UMW Holdings Bhd (4588) may list its oil and gas (O&G) division by year-end, said its president and group chief executive officer Datuk Abdul Halim Harun.
He said the firm is still hopeful to see the proposed listing take off after three postponements.
The original listing proposal involved a public issue of 250 million new 50 sen shares, with the exercise expected to raise over RM400 million.
"We would like to see it (proposed listing) happen, but it will depend on several factors, which include the economic condition," he told reporters after the launch of UMW Oilpipe Services Sdn Bhd's West Plant in Labuan last Monday.
Abdul Halim said UMW wants to see its investments in India pay off first before any concrete decision can be made.
The diversified group, which now derives a fifth of its revenue from oil and gas activities, had two years ago obtained the Securities Commission's (SC) approval for the listing.
However, it decided to put the plan on hold due to weak market conditions.
"Everything is about timing. It must be right before we can list our oil and gas division," he said, noting that arrangements for the proposed listing are in progress.
The UMW group started its oil and gas business in 2002 and has operations in 12 countries, including China, India, Indonesia and the Middle East.
The oil and gas division's business activities include the manufacture of oil country tubular goods and line pipes, exploration operations, fabrications, provision of oilfield services and supply of oilfield products.
The listed firm would have had a market value of above RM1.5 billion.
"We would like to see it (proposed listing) happen, but it will depend on several factors, which include the economic condition.... Everything is about timing. It must be right before we can list...
How would you interpret such statement?
Doesn't it appear or would it be wrong to say that since timing is everything, this company wants to list its subsidiary in a good economic condition?
But if its subsidiary is really good and if the subsidiary is worth every ringgit and sen to be a listed entity by itself, poor economic condition is certainly a non-issue yes? During a listed company lifespan, they would experience all kind of economic cycles. Some good and some really terrible. That is to be expected.
So what does it tell you when the company says they want to list but only if the timing is correct?
And what about the following chain of events... oh yeah, forget me not, UMW tried to list its oil and gas subsidiary a long time ago.
28th Feb 2008 (yeah.. that loooooong ago) i) PROPOSED INTERNAL RESTRUCTURING OF THE UMW GROUP OF COMPANIES (“PROPOSED INTERNAL RESTRUCTURING”); AND ii) PROPOSED LISTING OF UMW OIL & GAS BERHAD ON THE MAIN BOARD OF BURSA MALAYSIA SECURITIES BERHAD (“BURSA SECURITIES”) (“PROPOSED LISTING”) (COLLECTIVELY, REFERRED HEREIN AS THE “PROPOSALS”)
- On behalf of the Board of Directors (“Board”) of UMW Holdings Berhad (“UMW”), AmInvestment Bank Berhad (“AmInvestment Bank”), a member of the AmInvestment Bank Group, is pleased to announce that UMW proposes to undertake a listing exercise which will involve a number of its oil and gas corporations currently held by its two (2) wholly-owned subsidiaries, UMW Corporation Sdn Bhd (“UMWC”) and UMW Petropipe (L) Ltd (“UMWP”). The listing exercise on the Main Board of Bursa Securities will be effected via a recently-incorporated investment holding company, namely UMW Oil & Gas Berhad (“UMW O&G”) upon completion of an internal restructuring of the UMW Group... (the proforma numbers are included in that announcement)
Listing approval received on 31st March. Announced a couple days later in April 2008. i) PROPOSED INTERNAL RESTRUCTURING OF THE UMW GROUP OF COMPANIES (“PROPOSED INTERNAL RESTRUCTURING”); AND ii) PROPOSED LISTING OF UMW OIL & GAS BERHAD ON THE MAIN BOARD OF BURSA MALAYSIA SECURITIES BERHAD (“BURSA SECURITIES”) (“PROPOSED LISTING”) (COLLECTIVELY, REFERRED HEREIN AS THE “PROPOSALS”)
25th June 2008: PROPOSED LISTING OF UMW OIL & GAS BERHAD ON THE MAIN BOARD OF BURSA MALAYSIA SECURITIES BERHAD(“PROPOSED LISTING”)
- In view of the unfavourable prevailing market conditions and sentiment, the Board of UMW is re-evaluating the timing of the implementation of the Proposed Listing. The Board feels that it is in the best interests of the shareholders of UMW and the future investors in UMW Oil & Gas Berhad if the implementation of the Proposed Listing is deferred until such time as market conditions show sustained levels of improvement.
Ahaaa... market conditions must show sustained levels of improvement before they want to list!
Yeah... 2008... bad global markets.
- We refer to our announcements made on behalf of UMW Holdings Berhad (“UMW” or “Company”) dated 28 February 2008, 29 February 2008, 3 April 2008, 21 April 2008 and 25 June 2008 in relation to the Proposals.
On 3 April 2008, AmInvestment Bank Berhad (”AmInvestment Bank”), a member of the AmInvestment Bank Group, on behalf of the Company, announced that the Securities Commission (“SC”) had approved the Proposals via its letter dated 31 March 2008 (“SC Approval”).
Subsequently, on 25 June 2008, the Company announced that it was re-evaluating the timing of the implementation of the Proposed Listing in view of prevailing market conditions and that it was deferring the implementation of the Proposed Listing until such time market conditions show sustained levels of improvement.
Pursuant to Paragraph 12.01 of the SC’s Guidelines on the Offering of Equity and Equity-Linked Securities, the SC Approval will expire on 30 September 2008.
In this respect, AmInvestment Bank, on behalf of the Company, wishes to announce that it had on 9 September 2008, submitted an application to the SC for an extension of time of six (6) months from 1 October 2008 until 31 March 2009 for the Company to complete the Proposals. The application is currently pending the SC’s decision.
UMW shall continue to make further announcements as and when there are material developments in relation to the Proposals
An extension is seeked...
- On behalf of the Board of Directors of UMW, AmInvestment Bank Berhad (a member of the AmInvestment Bank Group) is pleased to announce that the Securities Commission had, vide its letter dated 3 April 2009 (which was received on 6 April 2009), granted the Company a further extension of time of six (6) months, up to 30 September 2009, to implement the Proposals.UMW shall continue to make further announcements as and when there are material developments in relation to the Proposals.
Got the extension they wanted.
It's now Sept 2009. No listing yet..... and UMW makes the following announcement: ANNOUNCEMENT I) PROPOSED INTERNAL RESTRUCTURING OF THE UMW GROUP OF COMPANIES (“PROPOSED INTERNAL RESTRUCTURING”); AND II) PROPOSED LISTING OF UMW OIL & GAS BERHAD ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD (“BURSA SECURITIES”) (“PROPOSED LISTING”) (COLLECTIVELY, REFERRED TO HEREIN AS THE “PROPOSALS”)
- We refer to our announcement dated 6 April 2009, made on behalf of UMW Holdings Berhad (“UMW” or “Company”) which stated that the Company was granted a further extension of time of six (6) months by the Securities Commission (“SC”), up to 30 September 2009, to implement the Proposals.
Under the original listing scheme, UMW Oil & Gas Berhad (“UMW O&G”), a subsidiary of the Company, was to acquire selected oil and gas subsidiary and associated corporations from both UMW Corporation Sdn Bhd and UMW Petropipe (L) Ltd and other vendors. These selected oil and gas subsidiary and associated corporations, comprising profitable entities within the Oil and Gas Division of UMW, were to form the proposed UMW O&G Group to be listed pursuant to the Proposed Listing.
However, since the SC’s approval of the original listing proposal on 31 March 2008, a number of other entities within the Oil and Gas Division of UMW (which were not included in the original listing scheme) have achieved profitability in their operations. The aforementioned entities were previously greenfield investments, and their maturity now has provided an avenue for a revision of the listing proposal.
In this regard, the Board of Directors of UMW is currently contemplating increasing the number of companies to be included in UMW O&G Group, consequent to which a revised listing scheme would have to be drawn up. This exercise, if agreed, would give rise to a bigger listing scheme which would be in the better interests of the Company and its shareholders.
Pursuant thereto, AmInvestment Bank Berhad (a member of AmInvestment Bank Group), on behalf of the Company, wishes to announce that it will not be seeking a further extension of time from the Securities Commission to implement the Proposals. Following the expiry of the SC’s approval of the original listing proposal, the Company will consider and, if relevant, make an announcement at the appropriate time on its intention to submit a fresh listing proposal to the SC.
Using the excuse that they want a bigger listing scheme, UMW formally announce that it is NOT seeking further extension of time to implement the listing of their Oil and Gas subsidy.
So how?
And it is now April 2010.... UMW says "We would like to see it (proposed listing) happen, but it will depend on several factors, which include the economic condition.... Everything is about timing. It must be right before we can list...
How?
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