PETALING JAYA: UEM Edgenta Bhd is acquiring an 80% stake in integrated facilities management services company KFM Holdings Bhd for RM128mil, a deal that will expand its presence in Malaysia as well as reach into the United Arab Emirates (UAE).
In a filing with Bursa Malaysia, the total asset solutions provider said it had signed a share sale agreement with Nurolamin Abas and Fardan Abdul Majeed for the 80% shareholding under a cash and share deal. The latter two own 100% in KFM.
KFM operates in the United Arab Emirates as well as Malaysia, where its wholly-owned unit Veridis PPP One Sdn Bhd held a 20-year concession from the Malaysia government to provide rectification works, retro-fitting works, asset management services and asset management programme for the Prime Minister’s office (PMO), the Perdana Putra Complex.
Apart from increasing UEM Edgenta’s market share in the facilities management sector in Malaysia, the deal will help it expand in the UAE. KFM’s outstanding secured contracts were in excess of RM700mil, which would provide earnings visibility up till 2031, UEM Edgenta said.
“The proposed acquisition is in line with (our) overall strategy to expand our asset facilities management business and the environmental and sustainability business. “Additionally, KFM’s track record and expertise in the implementation of green facilities management project for the PMO concession will add to UEM Edgenta’s reputation and expertise as it expands its environmental and sustainability facilities management segment,” it added.
Based on its track record, KFM had the necessary expertise and resources to carry out its secured contracts and was well positioned to secure more projects in both Malaysia and UAE, it added. The acquisition, to be paid over three tranches, would be funded through internally generated funds and bank borrowings, the company said.
Prior to the share sale agreement, UEM Edgenta, Nurolamin and Fardan had signed a term sheet for the exercise last month. At close yesterday, shares of UEM Edgenta closed five sen down at RM3.30 after a recent low of RM3.05 on November 20.
