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Malaysia's UEM Group to sell subsidiaries to Faber Group for $353 mln
August 5, 2013 / 11:35 AM / 4 years ago

Malaysia's UEM Group to sell subsidiaries to Faber Group for $353 mln

KUALA LUMPUR, Aug 5 (Reuters) - Malaysian builder UEM Group Bhd has offered to sell its entire stake in two subsidiary firms to its associate Faber Group for as much as 1.15 billion ringgit ($353.03 million), both companies said on Monday.

Faber Group told the stock exchange it received an offer from UEM, which wants to sell its entire stake in Opus Group Bhd - an asset manager for highways in Malaysia and overseas - and 100 percent owned PROPEL, the country’s largest highway maintenance firm.

UEM Group said in its offer letter that another associate UEM Builders, would sell its 100 percent stake in PROPEL to Faber Group for 500 million ringgit. Half of the price could be settled in cash and the rest via 125 million new Faber Group shares valued at 2 ringgit each, UEM said

Unlisted UEM Group said it would also dispose its more than 96 percent stake in Opus for about 627.5 million ringgit, with Faber paying for the transaction by issuing another 313.75 million shares at the same value.

The proposal would help Faber Group diversify its asset management business from the existing healthcare segment to include infrastructure and commercial sectors, UEM Group said.

At the same time, UEM Group would be able to streamline all its asset and facility management businesses under Faber - in which UEM owns a 34 percent stake.

Shares in Faber Group will resume trade on Tuesday. It last traded at 1.80 ringgit per share on Friday. ($1 = 3.2575 Malaysian ringgit) (Reporting by Niluksi Koswanage)

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