UEM Edgenta terminates JV after incurring losses

This article first appeared in The Edge Financial Daily, on September 4, 2019.
-A +A

KUALA LUMPUR: UEM Sunrise Edgenta TMS Sdn Bhd (UEMSET) has terminated its joint-venture (JV) agreement with Township Management Services Sdn Bhd (TMS) to operate Edgenta TMS Sdn Bhd (ETSB), which was conceived in 2016 as the country’s first holistic township management service operator.

UEMSET is 70%-owned by UEM Edgenta Bhd and 30%-owned by UEM Sunrise Bhd. Meanwhile, Khazanah Nasional Bhd wholly owns UEM Group Bhd.

In a filing with Bursa Malaysia yesterday, UEM Edgenta said the shareholders of ETSB have mutually agreed to terminate the JV agreement, with the intention of winding up ETSB.

It was noted that ETSB recorded losses of RM116,000 and RM670,000 for the financial years ended June 30, 2018 (FY18) and FY19 respectively.

The JV company focused on township management services comprising facilities, estate

and security management for building owners and residents of the Medini and Nusajaya townships in Iskandar Malaysia, Johor.

TMS is a wholly-owned unit of Medini Iskandar Malaysia Sdn Bhd, which in turn is a 60%-owned subsidiary of Jasmine Acres Sdn Bhd. Khazanah is also the holding company of Jasmine Acres by virtue of its interests in Iskandar Investment Bhd and Iskandar Ventures Sdn Bhd.