KUALA LUMPUR (Dec 4): UEM Edgenta Bhd’s indirect wholly-owned subsidiary Edgenta International Investments LLC (EII) has entered into a sale and purchase agreement and shareholders’ agreement with United Arab Emirates (UAE)-based NW Kaizen Holding Ltd to acquire 60% equity interest in Kaizen Owner Association Management Services LLC (KOA) and Kaizen AMS Property Supervision LLC.

In a filing with Bursa Malaysia on Monday, UEM Edgenta said the acquisition would be for AED43.2 million (RM55.1 million) in cash.

It added that the sale and purchase agreement would be completed on the second business day after EII received the amended commercial licences of Kaizen Group to reflect the transfer of the sale shares or such other time the parties may agree.

UEM Edgenta said the proposed acquisition was with the vision of Edgenta of the Future 2025 to expand its regional footprint, and enhance product and technology proposition in high-growth markets, such as Dubai and the wider UAE.

“With UEM Edgenta’s existing presence in the UAE facilities management through Operon Middle East, the proposed acquisition presents an opportunity to integrate and deliver a real estate services platform by combining property management and facilities management across the real estate services value chain of the UAE market, and potentially expanding to the wider Gulf Cooperation Council region,” it added.

Operon Middle East is UEM Edgenta’s wholly-owned subsidiary.

UEM Edgenta said the platform would benefit Operon through enlarged access to clients with potential revenue and cost synergies, and address the emerging lifestyle needs of residents, tenants and property owners.

It said the proposed acquisition is expected to be completed by the first quarter of 2024.