UEM Edgenta disposes of 51% share of JV with Apollo Sindoori

KUALA LUMPUR: UEM Edgenta Bhd's wholly-owned subsidiary Edgenta Facilities Sdn Bhd has disposed of its 51% stake or 47,113 shares in Faber Sindoori Management Service Private Ltd to Apollo Sindoori Hotels Ltd. for INR700mil (about RM40mil).

According to UEM Edgenta's filing with Bursa Malaysia, Faboor Sindoori was incorporated in 2007 as a 51:49 joint venture between Edgenta Facilities and Apollo Sindoori to provide integrated facilities management services in India.

UEM said the disposal will allow it to monetise its investment for an internal rate of return of more than 20%.

"Proceeds from the proposed disposal will allow UEM Edgenta to reinvest and allocate more resources to accelerate its international expansion strategy as it is moving towards realizing the Company’s Edgenta of The Future 2025 vision," it added.

UEM Edgenta said it will also be entering into a memorandum of business exploration with Apollo as an extension of their strategic partnership to collaborate in new growth areas and to continue introducing innovative solutions to the India healthcare markets.