UEM Edgenta via its wholly owned Edgenta Facilities Sdn Bhd entered into a Share Purchase Agreement with India’s Apollo Sindoori Hotels Limited for the disposal of its 51% stake in Faber Sindoori Management Services Private Limited for Rupee 700 million or approximately RM40 million.
According to Bursa filing, UEM Edgenta’s initial cost of investment was RM6,081,994 as of end of 2021 net assets of Faber Sindoori was INR1,198 million (approximately RM67 million) and net profit was INR246 million (approximately RM14 million), translated using closing rate as at, and the average rate for the financial year ended 31 December 2021, respectively.
Principal activities of Faber Sindoori include the provision of integrated facilities management services in India. Faber Sindoori has a paid-up capital of INR923,780 divided into 92,378 equity shares of face value at INR10 each.
The Sale Consideration after net-off capital gains tax and expenses related to the Proposed Disposal will be used for potential investments, including capital expenditure for growth opportunities within 12 months from the receipt of the proceeds.
It will also allow UEM Edgenta to monetise its investment from the promising business collaboration with Apollo Group in Faber Sindoori, achieving an Internal Rate of Return of more than 20%. Proceeds from the Proposed Disposal will allow UEM Edgenta to reinvest and allocate more resources to accelerate its international expansion strategy as it is moving towards realising the Company’s Edgenta of The Future 2025 vision.
