KUALA LUMPUR, 18 April – The Board of Directors of Faber Group Berhad (Faber) has today accepted the RM1.15 billion offer to acquire the Asset & Facility Management (AFM) businesses of single largest shareholder, UEM Group Berhad (UEM Group).
Faber today entered into a conditional share sale agreement with UEM Group in relation to the proposed acquisition which will see it potentially acquiring UEM Group’s wholly-owned AFM companies namely, Projek Penyelenggaraan Lebuhraya Berhad (PROPEL) and Opus Group Berhad (Opus).
Present at the signing and representing Faber was its Chairman and Independent Non-Executive Director, Dato’ Ikmal Hijaz Hashim. UEM Group was represented by Dato’ Izzaddin Idris, the Group Managing Director/Chief Executive Officer.
The proposed acquisition of PROPEL is for a total consideration of RM500 million which will be satisfied via a combination of cash payment of RM250 million and issuance of 125,000,000 new Faber shares at the issue price of RM2.00 per share. PROPEL is an infrastructure maintenance company with a strong track record and experience in highway maintenance.
Opus – an asset development and asset management provider of transportation infrastructure as well as built environment with operations in Malaysia and overseas – is to be acquired for a total consideration of RM651 million. The acquisition will be entirely satisfied via the issuance of 325,500,000 new Faber shares at the issue price of RM2.00 per share.
The proposed acquisitions will enable Faber to expand its AFM business which is currently focused in the healthcare sector. Upon completion, Faber will be transformed into a total Asset Development & Asset Management company with expertise and presence in the healthcare, infrastructure and commercial sectors.
It will also enable Faber to cement its position as the largest AFM company in Malaysia and bolster its revenue base by leveraging on the strength of the enlarged group to create more business opportunities for the company both locally and at the international level.
“With the agreement signed, we will commence the process of developing a company that is slated to be a regional champion for AFM services. We aim for the company to gain international recognition, achieve sustainable growth and ultimately be the clear leader in the AFM industry as we plan to offer an unparalleled array of services covering the total asset value chain across multiple sectors and industries,” said Dato’ Izzaddin.
With the acquisition, Faber will garner a larger presence and allow potential synergies to be extracted such as expertise, and market know-how over a single cost platform from sharing of common resources such as project managers and personnel with the same or similar skillsets.
UEM Group had submitted the proposal to the Board of Faber on 5 August 2013 and on 6 September 2013, the Board had accepted to participate in the proposal.
Upon the successful completion of this corporate exercise, which is expected to take place by third quarter of 2014, UEM Group will increase its direct equity interest in Faber from the current 34.29 percent to approximately 70 percent.
The offer is subject to various approvals including the shareholders of Faber, Securities Commission, and other relevant authorities.