KUALA LUMPUR (Sept 29): UEM Edgenta Bhd is investing RM13.5 million for a 60% equity interest in a facilities management services business in Riyadh, Saudi Arabia.
The group said its wholly owned unit, Edgenta Arabia Ltd, is buying the stake in MEEM for Facilities Management Company (MEEM) from Mohammed Ibrahim Al-Subeaei and His Sons Investment Company (MASIC).
MASIC, whose activities include asset management, direct investments and real estate investments, will continue to own the remaining 40% stake in MEEM.
UEM Edgenta said the investment is aligned with its vision to expand its regional footprint while enhancing product and technology proposition in high-growth markets like Saudi Arabia.
“MEEM serves as a readily operational facility management platform and has existing contracts in hand to accelerate UEM Edgenta’s entry into the Saudi Arabia market,” the group said in a filing with Bursa Malaysia.
UEM Edgenta said it would fund the investment, which is expected to be completed by the first quarter of next year, with internally-generated funds.
Shares of UEM Edgenta closed one sen or 0.9% lower at RM1.09 on Thursday, giving the group a market capitalisation of RM906.47 million. The counter has fallen by 31% year to date.