UEM Edgenta sees 20% revenue with AIFS acquisition

KUALA LUMPUR: UEM Edgenta Bhd expects its healthcare segment to make up 20% of the company’s revenue from January 2017 onwards, with the acquisition of Singapore’s Asia Integrated Facility Solutions Pte Ltd (AIFS).

UEM Edgenta managing director and CEO Azmir Merican said revenue from healthcare is RM350 million currently (about 11% of revenue) and the acquisition will boost the segment’s revenue to RM660 million next year (20% of revenue).

“Healthcare is a core sector for UEM Edgenta. With this transaction, we’re re-emphasising how important it is,” Azmir told a press conference after its EGM last Friday, where shareholders approved its proposed acquisition of AIFS for SG$185.9 million (RM581.9 million).

The AIFS group is principally involved in the provision of integrated facilities management services, healthcare facilities management services, housekeeping and patient management services.

AIFS is the holding company of UEMS Pte Ltd, an established facilities management provider currently servicing over 90 hospitals and healthcare institutions across Singapore, Taiwan and Malaysia.

Over the next five years, UEMS’ growth strategy includes expansion into other Southeast Asian countries such as Indonesia and Cambodia.

While UEM Edgenta is already a market leader in the provision of healthcare services to the public sector, this acquisition allows it to capture a leading position in Malaysia’s private healthcare sector and immediately establish its regional presence in Singapore and Taiwan.

Azmir said both parties can leverage each other’s core strength and services to create stronger customer networks. The acquisition is expected to be completed by the end of 2016.