KUALA LUMPUR, November 11 — UMW Equipment Division Sdn. Bhd. (“UEDSB”), an indirect wholly-owned subsidiary of UMW Holdings Berhad (“UMW”), has taken a significant step forward in its industrial equipment business by entering into a Share Sale and Purchase Agreement (“SSPA”) with Toyota Industries Corporation, Japan (“TICO”) on October 6, 2023. This agreement marks a substantial development in the collaboration between UMW and TICO, transitioning them from principal-distributor to co-owners of UMW Group’s industrial equipment business.
The partnership with TICO is poised to fortify and expand UMW Group’s industrial equipment business. Leveraging TICO’s expertise, both parties aim to establish a comprehensive One-Stop Centre for the Industrial Equipment and Logistics Automation sectors. This strategic move aligns with UMW’s commitment to support industries in embracing Industry 4.0 and anticipates driving substantial growth in the industrial equipment business. UMW’s enduring relationship with TICO traces its roots back to 1967 when UMW was appointed as the distributor for Toyota forklifts in Malaysia and Singapore. Over time, this partnership expanded to encompass Vietnam, as well as the Shanghai and Zhejiang regions in China.
To operationalize this strategic collaboration, a Special Purpose Vehicle company, UMW Toyota Material Handling Sdn. Bhd. (“UTMH”), has been established. All existing industrial equipment businesses within the UMW Group will be consolidated under UTMH. As per the SSPA, UEDSB has agreed to sell a 26% stake in UTMH to TICO for a negotiated purchase price of RM260 million. Post-transaction, UEDSB will retain a majority shareholding of 74%, while TICO will hold a 26% interest in UTMH. Dato’ Sri Ahmad Fuaad Kenali, President & Group Chief Executive Officer of UMW Holdings Berhad, expressed his enthusiasm for this strategic partnership.
He stated, “We are pleased to have entered into this partnership with TICO, which will realize UMW’s aspiration to move up the value chain in the industrial equipment business from distributorship to more value-driven One-Stop Centre services and Logistics Automation business with the full support of TICO as a shareholder of UTMH. With TICO’s stature as a leading manufacturer of material handling equipment globally as well as UMW’s strong presence in the region, we look forward to the enhanced opportunities that this partnership will bring, especially through the introduction of new equipment, innovative solutions, and the improvement of value-added services to expand our customer base and strengthen market share in the territories that we operate in.”
