UEM Edgenta to sell 61.2 per cent stake in OIC for RM504.1 million

KUALA LUMPUR: UEM Edgenta Bhd has proposed to sell its 61.2 per cent stake, or 90.51 million shares, in its New Zealand-based unit, Opus International Consultants Ltd ( OIC), for NZ$ 161.1 mi l lion ( RM504.1 million).

In a filing with Bursa Malaysia yesterday, UEM Edgenta said the disposal consideration would be made at the offer price of NZ$1.78 per OIC share.

UEM Edgenta said it has received a notice of takeover offer to purchase from WSP Global Inc, a Canadian company listed on the Toronto Stock Exchange that provided management and consultancy services to the built and natural environment.

“The disposal will be made via UEM Edgenta’s wholly- owned subsidiary, Opus International Ltd ( ONZ), a whol ly owned subsidiary of Opus Group Bhd (OGB) which in turn is whollyowned by the company,” it said.

OIC was listed on the New Zealand Stock Exchange since 2007. As at the latest practicable date, it has a market capitalisation of NZ$ 146.4 million ( RM458.0 million).

UEM Edgenta, however, said it would retain OGB, an entity that focused on project management and design consultancy operating in Malaysia and Indonesia, and which has been drawing resources from OIC primarily in the asset management and consultancy businesses in the expressway sector.

It said the proposed disposal of OIC was an opportunity for the company to monetise its investment upfront at a healthy premium over the current market price and would enable the company to reduce its gross gearing from 0.8x ( postdrawdown of sukuk of RM300mil in April 2017) to 0.4 time.

UEM Edgenta Managing Director/Chief Executive Officer, Datuk Azmir Merican, said the proceeds from the proposed disposal would be used to, among others, pare down debts.

“It will also provide UEM Edgenta with the financial resources and enable the management to focus on driving as well as supporting the organic growth and operational excellence initiatives in our core sectors.

“That (sectors) span healthcare, infrastructure and real estate in key markets, namely, Malaysia, Singapore, Indonesia, Taiwan, India, other South-East Asian countries, and West Asia,” he said. — Bernama