INTRIA Bhd expects to conclude in October the restructuring which will turn it into an engineering and construction outfit of UEM-World Bhd, the company that is taking over the assets and listed status of Renong Bhd.
United Engineers (M) Bhd (UEM) managing director/chief executive officer Abdul Wahid Omar said the exercise was proceeding as scheduled and the management would be going to the respective shareholders for approval.
Wahid was speaking to reporters after Intria's AGM and EGM in Subang Jaya yesterday.
Intria, a unit of the UEM group, had in April submitted its proposals for a scheme of arrangement with UEM and Propel Bhd to take the latter private, to acquire UEM Construction Bhd (UEC) and to rename Intria as UEM Builders Bhd.
The proposal is part of the UEM-World group's restructuring which will regroup its massive holdings into four core divisions: engineering and construction under Intria, healthcare under Pharmaniaga, environmental services under Kualiti Alam Sdn Bhd, and property development under Renong, which is to be renamed UEM Land Bhd.
Wahid said the privatisation of Propel, an engineering and maintenance contractor, would fit in nicely with Intria's aim to be a formidable engineering and construction player.
Propel will be able to contribute recurring profits and cash flow to Intria, Wahid said, adding that the acquisition of UEC, meanwhile, would put Intria in the big league of construction players, with contracts exceeding RM3bil.
As at the end of February, UEC had an order book of RM2.9bil and had last week won another contract worth RM346mil to build a College of Technology in Doha, Qatar.
It shows that we have the resources, track record and capability to carry out projects of that magnitude overseas, Wahid said, adding that Intria would continue to seek opportunities in the Middle East.
Locally, UEC is involved in the Ipoh-Rawang double tracking project, and in India a nine-package road construction project worth more than RM1bil.
In line with its aspiration to be an international construction company, Wahid said Intria would maintain its strategic stake of 34.6% in Costain Group plc.
On the current-year prospect, Wahid said Intria expected to better the RM137mil revenue it achieved in 2002 if the restructuring could be completed in October.
At the EGM, shareholders approved a resolution on recurrent related-party transactions of a revenue and trading nature.