KUALA LUMPUR: UEM Edgenta Bhd, which has proposed to acquire an 80% equity stake in KFM Holdings Sdn Bhd for RM128mil cash, has entered into a shares sale agreement with KFM's controlling shareholders for the deal.
In a filing with Bursa Malaysia today, UEM Edgenta said it had entered into a shares sale agreement with the Nurolamin Abas and Fardan Abdul Majeed, who hold stakes of 51% and 49% respectively in KFM.
It said the acquisition involved an upfront payment of RM92mil, of which RM36mil is in cash while RM56mil will come from new UEM Edgenta shares to be issued. The acquisition also involved a deferred cash payment of RM20mil and incremental value payment of RM16mil, subject to KFM’s achievement of key financial targets.
UEM Edgenta said the proposed acquisition was in line with UEM Edgenta’s overall strategy to expand its asset facilities management business and the environmental and sustainability business. It said the acquisition would provide the company the opportunity to consolidate a key market player, acquire complementary skill sets and increase its market share in the facilities management sector in Malaysia.
“It also provides the company an immediate opportunity to expand its presence into the United Arab Emirates where KFM is currently present.The Proposed Acquisition is expected to generate operational synergies by the combination of expertise, experience, track record, financial strength and geographical reach of UEM Edgenta and KFM,” it said.
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