UEM Edgenta plans to buy Singapore firm

  • Business
  • Tuesday, 27 Sep 2016

Azmir: ‘The acquisition presents an attractive opportunity.’

It proposes to pay RM563mil cash for the facilities management company

PETALING JAYA: UEM EDGENTA BHD, a total asset solutions provider, is buying a Singapore-based facilities management company for S$185.9mil (RM563mil) cash.

The deal will turn the company into a regional player in providing healthcare support and facilities services for various hospitals, clinics and health institutions in Malaysia, Singapore and Taiwan.

The acquisition, if approved by its shareholders at an EGM to be convened, is expected to be completed in the fourth quarter of this year.

UEM Edgenta’s unit in Singapore yesterday entered into a sale and purchase agreement with Asia IFM Solutions Ltd for the proposed acquisition of Asia Integrated Facility Solutions Pte Ltd (AIFS).

AIFS indirectly owns UEMS Pte Ltd.

“The proposed acquisition of UEMS not only allows UEM Edgenta to have a leading position in Malaysia’s private healthcare sector, but we are also able to immediately establish our regional healthcare services presence in Singapore and Taiwan,” said UEM Edgenta managing director/chief executive officer Azmir Merican in a statement yesterday.

UEMS, which has a track record of more than 25 years in providing facilities management services to the healthcare sector, serves over 60 public and private hospitals, and has 26,000 beds in Malaysia, Singapore and Taiwan.

Azmir said UEMS’ businesses complement the core services of UEM Edgenta and the proposed acquisition provides opportunity for both parties to leverage on each other’s core strengths and services to create stronger customer networks.

“The proposed acquisition presents a unique opportunity, being both attractive strategically and financially to UEM Edgenta to expand its healthcare service offerings and establish immediate presence in the Singapore and Taiwan markets, and to cement its position in Malaysia, given the AIFS Group’s leading market position in providing integrated facilities management services to the healthcare sector and good track record of servicing blue-chip customers,” he said.

In Malaysia, UEMS is the No. 1 healthcare facilities management provider, servicing private healthcare and hospital segments such as Prince Court Medical Centre, Pantai Hospital Kuala Lumpur, Gleneagles Penang and Assunta Hospital.

UEMS is also the leader in the hospital facilities management segment for public and private hospitals in Taiwan, servicing among others, Saint Paul’s Hospital, National Taiwan University Hospital, Pingtung Christian Hospital and Yuan’s General Hospital. It holds the No. 2 position for the same segment in Singapore for the provision of housekeeping and patient management services, where its clients include Changi General Hospital, St Luke’s Hospital, Tan Tock Seng Hospital as well as Sengkang Health @ Alexandra Hospital.

“UEM Edgenta has an expansive service offering that includes biomedical engineering services, healthcare waste management, energy management services, and linen and laundry services, which we are able to add into UEMS resulting in a wider scope of complementary services being offered to existing and new clientele in both prevailing and new geographies,” Azmir said.

The company said the proposed acquisition is expected to positively contribute to the future revenue growth and earnings enhancements of the enlarged UEM Edgenta Group. UEM Edgenta’s shares yesterday fell 15 sen to close at RM3.25.

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