KUALA LUMPUR: UEM Edgenta Bhd is buying an 80% stake in KFM Holdings Sdn Bhd for RM128mil in cash and shares as it expands its asset management services in Malaysia and the UAE.
UEM Edgenta said on Tuesday it had inked a binding term sheet with Nurolamin Abas and Fardan Abdul Majeed to buy the 80% stake comprising of 12 million shares.
The purchase would comprise of an upfront cash payment of RM36mil, issuance of 18.12 million new UEM Edgenta shares at RM3.09 each, deferred cash payment of RM20mil and incremental value payment of RM16mil.
UEM Edgenta, which is a total asset solutions outfit, said KFM is a key player in the integrated facilities management sector with strong track record and the outstanding secured contracts were more than RM700mil, which would provide earnings visibility up to 2031.
“Based on its track record, KFM has the necessary expertise and resources to carry out its secured contracts and is well positioned to secure more projects in both Malaysia and UAE.
“The board believes that KFM’s businesses complement the core services of UEM Edgenta and KFM’s track record and expertise will enable UEM Edgenta to expedite its value creation and strategic growth plan,” it said.
UEM Edgenta said the proposed acquisition is in line with its overall strategy to expand into the asset facilities management business and the environmental and sustainability business.
“The proposed acquisition will provide the company the opportunity to consolidate a key market player, acquire complementary skill sets and increase its market share in the facilities management sector in Malaysia. It also provides the Company an immediate opportunity to expand its presence into the UAE where KFM is currently present,” it added.
