Shah Alam, 29 Nov 2010 - The UMW Group today announced that in order to strengthen its Pennzoil lubricant distributorship agreement, UMW Auto Parts Sdn Bhd (UAP), a wholly-owned subsidiary in the UMW Group, has entered into two separate Share Sale Agreements with Pennzoil-Quaker State Company (PQSC) for the acquisition of 30% of the issued and paid-up share capital of Lubetech Sdn Bhd (LSB) and 50% of the issued and paid-up share capital of UMW Pennzoil Distributors Sdn Bhd (UPD) from PQSC. Upon completion of the Proposed Acquisitions, both LSB and UPD will become wholly-owned subsidiaries in the UMW Group.

Under the Share Sale Agreements, UAP will acquire 324,000 ordinary shares of par value RM1.00 each, representing 30% of the issued and paid-up share capital of LSB at a purchase consideration of RM5,898,058.25, and 500,000 ordinary shares of par value RM1.00 each, representing 50% of the issued and paid-up share capital of UPD at a purchase consideration of RM9,101,941.75 from PQSC.

The purchase consideration of the Proposed Acquisitions was arrived at on a “willing-buyer willing-seller” basis.

UMW’s strategy is to eventually establish itself in the international lubricant arena.

The term of the Trademark License Agreement between PQSC and UPD is for 10 years (5 + 5).

PQSC is a leading worldwide automotive consumer products company formed in the United States of America in 1998. Its Pennzoil and Quaker State brand motor oils are the number one and two selling motor oils in the United States of America.

The UMW Group is an international conglomerate that develops industries, manages partnerships and facilitates growth. It is involved in four core businesses – Automotive, Equipment, Manufacturing and Engineering and Oil and Gas.
In adopting the rallying call Beyond Boundaries, UMW is set to play a leading role in shaping the future of its industries globally. The Company will do this by inspiring vibrant ideas, nurturing potential, pioneering partnerships and delivering excellence in everything it does; the rewards of which will contribute to the progress and well-being of its stakeholders.