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UEM Edgenta Buys 80% Stake In Facilities Management Firm
Malaysia Daily Bulletin | 25 November 2015
  • UEM Edgenta is taking a 80 percent stake in integrated facilities management company KFM Holdings for RM128 million, in a move to expand into the asset facilities management, environmental and sustainability business.
  • According to the firm, the deal will include an upfront payment of RM92 million in the form of RM36 million cash and 18.1 million new shares (issued at RM3.09 per share), while a further RM36 million will be paid over three years subject to KFM meeting key financial targets.
  • KFM is principally involved in the provision of integrated facilities management services, green technology and sustainability services in Malaysia and the United Arab Emirates.
  • The deal, which does not require the approval of the shareholders is expected to be completed within three months.

Significance: UEM is of the view that KFM’s businesses complement its current core services and KFM’s track record and expertise will enable the firm to expedite its value creation and strategic growth plan. Additionally, KFM has outstanding secured contracts in excess of RM700 million, which would provide earnings visibility up to 2031.

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