KUALA LUMPUR (Dec 15): Not wanting to have all eggs in one basket, Uzma Bhd is undertaking an internal reorganisation exercise so that the group’s core activities are not housed under one single subsidiary.  
The proposed reorganisation exercise also aims to streamline the group's structure and management. 

In a filing with the stock exchange, Uzma noted many of Uzma's core projects are undertaken by Uzma Engineering Sdn Bhd (UESB), since most of the PETRONAS licenses are housed under this wholly-owned unit.

“The internal reorganisation was proposed to restructure the current set-up of the group’s core businesses and to streamline its structure and management. 

“In order to mitigate over concentrating of contracting risk in UESB, it is crucial to transfer some of UESB’s businesses to individual entity according to its nature of business,” the filing read. 

As such, the reorganisation will involve the transfer of all cost centres, consultancy and resource solution businesses out of UESB.

The cost centres — which includes finance, human resources, business development, information technology, and administration departments — will be transferred to be parked under the group. 

As for UESB’s consultancy and resource solution business, it will be transferred to Uzma Resource Solutions Sdn Bhd, which was formerly known as Teraju Meriah Sdn Bhd. 

This means all staff employed at UESB will also be shifted, so that all cost of maintaining the shared-service functions is transferred to Uzma. 

The internal reorganisation will not have any effect on Uzma’s share capital and substantial shareholders’ shareholdings, nor material effect on the group's earnings per share or net assets per share of the group for the financial year ending June 30, 2018. 

Uzma also recently changed its financial year end from Dec 31, 2017 previously, to June 30, 2018.

Shares in Uzma closed unchanged at RM1.32 today, valuing the company at RM422.44 million. Year-to-date, the counter has slipped 22.4%, from RM1.70 on Dec 30, 2016.