Faber's Propel and Opus RM1.2bil buy has shareholders approval at EGM

  • Business
  • Friday, 27 Jun 2014

KUALA LUMPUR: Shareholders of Faber Group Bhd has approved the group’s RM1.15bil acquisition of Projek Penyelenggaraan Lebuhraya Bhd (Propel) and Opus Group Bhd (Opus) from UEM Group Bhd.

According to Faber executive director Azmir Merican, Faber is poised to be the largest Asset and Facility Management company in Malaysia with an enlarged footprint abroad.

He said the group would buy Propel for RM500mil, where RM250mil would be paid via cash and the issuance of 125 million new Faber shares at RM2 per share.

For its cash portion, RM150mil will be from its internally generated fund and the remainder will be through bank borrowings.

For Opus acquistion, Azmir said Faber would pay RM651mil to be satisfied by 325.5 million new shares at RM2 a share.

“We expect the deal to be finalised by October this year,” he told reporters after the group’s EGM yesterday

Its shareholders also gave thumbs up on the RM1.03bil Asset Management Services (AMS) agreement entered via its unit Faber Medi-Serve Sdn Bhd, with Konsortium Prohawk Sdn Bhd.

The exercise will see Faber providing AMS for Women and Children’s Hospital in Kuala Lumpur, where it will boost Faber’s income over the next 27 years.

Its shareholders also approved Faber’s exemption from extending a Mandatory Offer of the remaining Faber shares not already held by Faber for the proposed acquisition of Propel and OGB.

On its future outlook, Azmir said the group would focus on its concessions businesses.

He said Faber is focusing on domestic market and will continue its efforts in high impact commercial sectors such as O&G as well as energy management services.

“We will apply what we have in other sectors such as oil and gas, and we have got a few things done,” he said.

Some of Faber’s key current clients in this sectors are Cahaya Jauhar, Petronas and Naza TTDI.

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