(AFP) The government said today it has received over 90 percent acceptances for its RM3.8billion offer to buy construction giant United Engineers Malaysia (UEM).

The government announced a bid to take over UEM in July as the first step towards tackling its biggest corporate headache - UEM associate company Renong Bhd - and wooing foreign investors back to the stock market.

Renong, which once enjoyed political clout as the investment arm for Prime Minister Dr Mahathir Mohamad's ruling party, has some RM13billion in outstanding group debt.

The government investment vehicle handling the takeover, Syarikat Danasaham, has offered to buy UEM at RM4.50 ringgit a share but this was conditional upon receiving at least 90 percent acceptances.

UEM has a 32.6 percent stake in Renong, which in turn has a 37.9 percent stake in UEM.

"Danasaham is delighted to announce that the voluntary offer has become unconditional as to acceptances," the company said in a statement to the stock exchange.

Following the successful takeover by Danasaham, a unit of government investment arm Khazanah Nasional Bhd., UEM will be delisted from the stock exchange.

The Renong group, which has interests in banks, toll roads, oil and gasfields and real estate, is expected to undergo a restructuring with a new UEM management in place, analysts said.