PETALING JAYA (Dec 2): UEM Edgenta Bhd expects Singapore-based facilities management company UEMS Pte Ltd to contribute to its revenue from January onwards.

Its managing director and chief executive officer Azmir Merican said the takeover of UEMS, which is funded through bank borrowings, is expected to be completed by the end of this month.

Total asset solutions provider UEM Edgenta is acquiring Asia Integrated Facilities Solution Pte Ltd, which indirectly owns UEMS, for S$185.9 million (about RM582.6 million). Shareholders of UEM Edgenta approved the acquisition at an extraordinary general meeting (EGM) today.

The group said UEMS serves over 90 hospitals and healthcare institutions across Singapore, Taiwan and Malaysia.

Going forward, UEMS's growth strategy includes expansion into other Southeast Asian countries such as Indonesia and Cambodia, a move that will help transform UEM Edgenta into a regional healthcare support and facilities services provider.

"While UEM Edgenta is already a market leader in the provision of healthcare services to the public sector, this acquisition allows us to capture a leading position in Malaysia's private healthcare sector and immediately establish our regional presence in Singapore and Taiwan," Azmir told reporters after the EGM.

"We believe this is a compelling transaction which will deliver positive value to our shareholders. The acquisition will accelerate revenue growth and pave the pathway for UEM Edgenta to take the leadership position in healthcare support services," he added.

Azmir said the healthcare segment currently contributes about RM350 million to the group's revenue; and following the UEMS acquisition, it is expected to contribute to about RM660 million.

At 3.41pm, UEM Edgenta's share price was up 1 sen or 0.31% at RM3.25, giving a market capitalisation of RM2.71 billion.