Friday 29 Mar 2024
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KUALA LUMPUR (June 28): UEM Edgenta Bhd has secured a RM42.99 million contract from Malaysia Airlines Bhd for facilities management services for the national carrier.

According to its bourse filing today, the group said its 80%-owned subsidiary KFM Holdings Sdn Bhd has entered into a related party transaction with Malaysia Airlines for the above contract.

Under the contract, UEM Edgenta will provide Malaysia Airlines with facilities management, hotel management, mailing and cafeteria services.

It will also collect a RM4.1 million sinking fund from Malaysia Airlines, which will be used for facilities maintenance based on certain terms and conditions set by Malaysia Airlines.

The contract period is 34 months or such extended period as stipulated.

Malaysia Airlines is a wholly-owned subsidiary of Malaysia Aviation Group Bhd, which in turn is wholly-owned by Khazanah Nasional Bhd — the holding company of UEM Group Bhd.

KFM Holdings is an 80% subsidiary of UEM Edgenta, in which UEM Group owns a 69.14% stake. Hence, it is deemed as a related party transaction.

UEM Edgenta expects the contract to contribute positively to its earnings for the financial years ending Dec 31, 2016 (FY16) to FY18.

The stock closed at RM3.43, up nine sen or 2.69%, with 76,700 shares traded. It has a market value of RM2.78 billion.

 

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