UEM-Renong to unveil revamp


  • Business
  • Thursday, 27 Mar 2003

By B.K. SIDHU

THE United Engineers (M) Bhd (UEM)/Renong Bhd group unveils today its long-awaited restructuring plan aimed at putting the group on a stronger growth path.  

Since the plan involves several companies within the group, speculation is rife of some grouping of related business units for greater focus.  

In a statement to the KLSE yesterday, Renong requested trading of its shares to be suspended today pending an announcement on the revamp. 

Similarly, Intria Bhd and Projek Penyelenggaraan Lebuhraya Bhd (Propel) also requested that trading of their shares be suspended today.  

Sources told StarBiz that part of the complex restructuring scheme to be unveiled today involves the privatisation of Propel. 

UEM was taken private and de-listed from the KLSE via a voluntary offer by Syarikat Danasaham Sdn Bhd, a unit of Khazanah Nasional Bhd, in October 2001. 

Subsequently in December, UEM had announced a major corporate and debt-restructuring plan aimed at cutting its debts from RM30.3bil to RM14bil by the middle of last year.  

The plan had also called for the rationalisation of the group into six business groupings – expressways, engineering and construction, environmental services, healthcare, property, and a corporate development unit.  

The group had proposed to divest stakes in six listed companies and thus far Renong has signed an agreement to hive off its 39% stake in Crest Petroleum Bhd to Sapura Group for RM105mil.  

Besides that, the group has managed to list its crown jewel, Plus Expressway Bhd, on the KLSE and to hive off Putra (Projek Usahasama Transit Ringan Automatik Sdn Bhd) to the government.  

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