THE UEM-Renong Bhd's group-wide restructuring exercise will be completed by November, two months behind the scheduled September deadline set when the plan was first unveiled in March.
Its chief executive officer Abdul Wahid Omar, nevertheless said the scheme, which involved a major overhaul of the group into four operational units – engineering and construction, healthcare, environmental services, and property – and the listing of a new company, UEM World Bhd, in place of Renong Bhd that will be taken private - was still on track.
“Our priority after November is to concentrate on business and operational issues. We will be dedicated to business development,” Wahid told reporters after UEM’s 44.6%-owned associate Intria Bhd’s EGM in Subang Jaya yesterday.
A vital cog in the new UEM machinery was put in place after shareholders of Intria approved all four resolutions tabled at the EGM, including the acquisition of Projek Penyelenggaraan Lebuhraya Bhd (Propel) for RM210mil and UE Construction Sdn Bhd (UEC) for RM156mil, to consolidate the engineering businesses under Intria.
The company, slated in the scheme to lead the group’s engineering and construction arm and to be held directly by UEM World, would be renamed UEM Builders Bhd and its exercise completed by October, Wahid said.
Under the new structure, UEM World would own between 48.9% and 55.3% of Intria, which in turn would hold 100% of Propel, UEC as well as Intria Bina Sdn Bhd and Penang Bridge Sdn Bhd.
Intria chairman Datuk Abu Hassan Kendut said the new structure and consolidation of businesses would result in a more focused Intria group, particularly in infrastructure and engineering works.
He said its earnings would be enhanced and broadened with the inclusion of expressways maintenance and construction businesses via Propel and UEC respectively.
Currently Intria has an order book of RM3.7bil, of which RM2.8bil comprises construction work-in-progress of three- to four- year duration. The company also recently won a RM300mil contract in Qatar to construct a college and highway.
On Intria’s proposal for the second Penang bridge, Wahid confirmed the company had been talking to the government but declined to elaborate further, saying that it was “early days yet and may take some time.”