UEM Edgenta’s subsidiary to manage Malaysia Airlines facilities

  • Corporate News
  • Tuesday, 28 Jun 2016

epa05128695 The tail wings of Malaysia Airlines (MAS) aircraft as a plane is loaded with meals on the tarmac before take off at the Kuala Lumpur International Airport (KLIA) in Kuala Lumpur, Malaysia, 27 January 2016. A piece of plane wreckage found in southern Thailand last weekend is not part of the still missing Malaysia Airlines Flight 370, according to Malaysia's Transport Ministry after investigation of the debris. The search continues in the Indian Ocean to find any trace of the aircraft that disappeared on 08 March 2014 with 239 people on board. EPA/BARBARA WALTON

KUALA LUMPUR: UEM Edgenta Bhd’s 80%-owned subsidiary KFM Holdings Bhd (KFMH) has netted a RM42.99mil contract to provide facilities management services to Malaysia Airlines Bhd (MAB), another company ultimately owned by Khazanah Nasional Bhd.

In a filing with Bursa Malaysia, the asset and facilities management firm said the contract period was 34 months or any extended period as stipulated in the contract’s conditions.

The services under the contract include comprehensive facilities management services valued at RM33.17mil, hotel management services (RM4.12mil), mailing services (RM1.24mil), cafeteria services (RM365,400) and sinking fund (RM4.1mil).

“Sinking fund” refers to lump sum funds set aside by MAB for facilities maintenance. The fund is only to be used at MAB’s discretion based on certain terms and conditions.

UEM Edgenta said the transaction was expected to contribute positively to its earnings and net assets per share for the financial years ending Dec 31, 2016 to 2018.

UEM Edgenta shares added 9 sen to close at RM3.43 on Tuesday, with 76,700 shares traded.
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