UEM Edgenta sells 51% stake in Indian facilities management firm for RM40m

KUALA LUMPUR (Nov 9): UEM Edgenta Bhd is selling its 51% stake in Faber Sindoori Management Services Pte Ltd for 700 million rupees (RM40 million) in cash to Apollo Sindoori Hotels Ltd (ASHL).

In a Bursa Malaysia filing on Wednesday (Nov 9), the group said its wholly owned subsidiary Edgenta Facilities Sdn Bhd has entered into a share purchase agreement with ASHL, which holds the remaining 49% in Faber Sindoori.

According to UEM Edgenta, Faber Sindoori is mainly involved in the provision of integrated facilities management services in India.

"The proposed disposal provides an opportunity for UEM Edgenta to monetise its investment from the promising business collaboration with Apollo Group in Faber Sindoori, achieving 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 realising the company’s Edgenta of The Future 2025 vision," it said.

According to the group, the proceeds from the sale will be used for potential investments, including capital expenditure for growth opportunities within 12 months from the receipts of the proceeds, of which the final payment is expected to be received by or on Dec 31, 2022.

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

At the noon break, UEM Edgenta shed one sen or 0.92% to RM1.08, with a market capitalisation of RM898.15 million.