Gains Leading Position in Malaysia’s Private Healthcare Sector and Immediate Presence in Singapore and Taiwan
KUALA LUMPUR, 26 September – Total Asset Solutions provider, UEM Edgenta Berhad (“UEM Edgenta”) announced today that UEM Edgenta and its wholly-owned subsidiary, Edgenta (Singapore) Pte Ltd have entered into a Sale and Purchase Agreement (“SPA”) with Asia IFM Solutions Limited for the proposed acquisition of Asia Integrated Facility Solutions Pte Ltd which indirectly owns UEMS Pte Ltd (“UEMS”) for SGD185.9 million, equivalent to approximately RM563 million including its net cash.
UEMS, a well-established market leader with over 25 years of notable track record, provides facilities management services to the healthcare sector serving over 60 public and private hospitals, and 26,000 beds in Malaysia, Singapore and Taiwan.
In Malaysia, UEMS is the number one healthcare facilities management provider servicing private healthcare and hospital segments such as Prince Court Medical Centre, Pantai Hospital Kuala Lumpur, Gleneagles Penang and Assunta Hospital. UEMS is also the leader in the hospital facilities management segment for public and private hospitals in Taiwan, servicing amongst others Saint Paul’s Hospital, National Taiwan University Hospital, Pingtung Christian Hospital and Yuan’s General Hospital. It holds the number two position for the same segment in Singapore for the provision of housekeeping and patient management services where their clients include Changi General Hospital, St. Luke’s Hospital, Tan Tock Seng Hospital as well as Sengkang Health @ Alexandra Hospital.
“The proposed acquisition of UEMS not only allows UEM Edgenta to have a leading position in Malaysia’s private healthcare sector but we are also able to immediately establish our regional healthcare services presence in Singapore and Taiwan,” said UEM Edgenta’s Managing Director/Chief Executive Officer, Azmir Merican.
“UEMS’ businesses complement the core services of UEM Edgenta and the proposed acquisition provides opportunity for both parties to leverage on each other’s core strength and services to create stronger customer networks. UEM Edgenta has an expansive service offering that includes biomedical engineering services, healthcare waste management, energy management services, and linen and laundry services which we are able to add into UEMS resulting in a wider scope of complementary services being offered to existing and new clientele in both prevailing and new geographies.”
Azmir added that the proposed acquisition would also allow UEM Edgenta and UEMS to adopt and blend both companies’ best practices to further enhance operating efficiency. One of which is via UEMS’ proprietary technology known as UETrack™ that was developed in-house to better manage and allocate resources in its daily operations. The technology, which has been trademarked in five countries, improves productivity and can be customised based on each hospital’s protocols.
UEMS has demonstrated strong growth and earnings performance in the recent financial years from its operations in the three markets where revenue has generally grown at a healthy rate over the last three years supported by robust growth in the healthcare sector. The proposed acquisition is expected to positively contribute to the future revenue growth and earnings enhancements of the enlarged UEM Edgenta Group.
The proposed acquisition is expected to be completed in the fourth quarter of 2016, subject to UEM Edgenta’s shareholders’ approval being obtained at an extraordinary general meeting to be convened.