Faber contracts worth RM3bil


  • Business
  • Friday, 03 Apr 2015

Faber has signed a 10-year concession for the provision of support services at hospitals in Perak, Penang, Kedah and Perlis.

PETALING JAYA: Integrated facilities management provider Faber Group Bhd has finally announced the value of the contracts it received recently. They are worth about RM3bil collectively.

The 10-year concession it signed on March 11 is worth RM307.32mil per year.

The new agreement is for the provision of support services (HSS) at hospitals in Perak, Penang, Kedah and Perlis, and takes effect this month.

Faber secured the contract through its 100%-owned unit Faber Medi-Serve Sdn Bhd (FMS). The contract also includes undertaking the development of assets and services information system at Government healthcare facilities in the covered regions.

Besides that, it also announced the value of the six-month contract in Sabah and Sarawak.

The contract FMS signed with Sedafiat Sdn Bhd is worth RM77.68mil, while the contract with One Medicare Sdn Bhd is worth RM68mil.

Faber owns 40% in Sedafiat and One Medicare.

FMS signed agreements with Sedafiat and One Medicare to facilitate the transition of the provision of the services from FMS to Sedafiat and One Medicare during the early period of the Sabah and Sarawak concessions.

“The signing of the services agreements will not have any effect on the issued and paid-up capital, or on the shareholding of the substantial shareholders of the company.

“However, it will contribute positively to the earnings and net assets of the Faber group,” it said.

In 1996, FMS, Radicare and Pantai Medivest had secured a 15-year HSS contract, which was reportedly worth RM7.5bil.

The previous concession ended in October 2011.

Upon the termination, Faber had been renewing its services with the Government on a periodical basis.

“Upon execution of the new concession agreement, the interim agreement dated July 2, 2012 entered into between the Government and FMS to continue providing HSS on an interim basis, pending the negotiation and finalisation of the terms and conditions of the new concession agreement, shall automatically terminate,” the company had said earlier on.

Analysts opined that the new concession and contract value provided clarity to the investors.

Faber, 70.7% owned by UEM Group Bhd, is changing its name to UEM EDGENTA BHD.

The counter closed five sen higher to RM3.35 yesterday.

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