UEM Edgenta AGM to clarify issues on purchase of Singapore unit

UEM Edgenta Bhd will hold its annual general meeting (AGM) on Friday, which will discuss a significant buy amounting to S$185.915 million (RM580 million) to be fully financed via bank borrowings.

UEM Edgenta is buying Singapore unit UEMS Pte Ltd for RM563 million to enlarge its healthcare services in the Asean region.

UEMS has more than 60 public and private hospitals with 26,000 beds under its portfolio in Malaysia, Singapore and Taiwan that it is currently servicing.

UEMS holds the No. 2 position for the segment in Singapore.

UEM Edgenta managing director and chief executive officer Azmir Merican said the proposed acquisition would allow UEM Edgenta to gain a leading position in Malaysia’s private healthcare sector.

At the AGM, minority shareholders are likely to ask about the group’s borrowings, in terms of how much secured and unsecured portions to be raised for financing the proposed acquisition.

They are also likely to ask why there is a deed of negative pledge for the borrowings.

After the acquisition, its gearing is expected to rise to 0.64 time and net assets per share would drop to RM1.63, according to the Minority Shareholder Watchdog Group.

Crackdown on illegal offshore ringgit trading

Two banks in Australia were last week fined heavily for fixing the ringgit exchange rate offshore.

The Australian Competition and Consumer Commission fined Australia and New Zealand Banking Group Ltd A$9 million (RM29.9 million) while Macquarie Ltd got a A$6 million penalty.

The illegal activities were carried out by both banks in 2011.

The writer