KUALA LUMPUR (Sept 26): Total asset solutions provider UEM Edgenta Bhd is proposing to acquire Asia Integrated Facility Solutions Pte Ltd, which indirectly owns UEMS Pte Ltd, for S$185.9 million (RM563 million).

In a statement filed to Bursa Malaysia today, UEM Edgenta said that together with its wholly-owned subsidiary, Edgenta (S) Pte Ltd, the group has entered into a sale and purchase agreement with Asia IFM Solutions Ltd for the acquisition.

UEMS, a well-established market leader with over 25 years of notable track record, provides facilities management services to the healthcare sector serving over 60 public and private hospitals, and 26,000 beds in Malaysia, Singapore and Taiwan.

In Malaysia, UEMS services private healthcare and hospital segments such as Prince Court Medical Centre, Pantai Hospital Kuala Lumpur, Gleneagles Penang and Assunta Hospital.

UEMS is also the leader in the hospital facilities management segment for public and private hospitals in Taiwan, servicing amongst others Saint Paul's Hospital, National Taiwan University Hospital, Pingtung Christian Hospital and Yuan's General Hospital.

The company holds the number two position for the same segment in Singapore for the provision of housekeeping and patient management services where their clients include Changi General Hospital, St. Luke's Hospital, Tan Tock Seng Hospital as well as Sengkang Health @ Alexandra Hospital.

UEM Edgenta chief executive officer Azmir Merican said the acquisition of UEMS would not only allow UEM Edgenta to have a leading position in Malaysia's private healthcare sector, but the group is also able to immediately establish its regional healthcare services presence in Singapore and Taiwan.

"UEMS's businesses complement the core services of UEM Edgenta and the proposed acquisition provides opportunity for both parties to leverage on each other's core strength and services to create stronger customer networks.

"UEM Edgenta has an expansive service offering that includes biomedical engineering services, healthcare waste management, energy management services, and linen and laundry services which we are able to add into UEMS resulting in a wider scope of complementary services being offered to existing and new clientele in both prevailing and new geographies," he said.

Azmir added the proposed acquisition would also allow UEM Edgenta and UEMS to adopt and blend both companies' best practices to further enhance operating efficiency.

"One of which is via UEMS's proprietary technology known as UETrack that was developed in-house to better manage and allocate resources in its daily operations.

"The technology, which has been trademarked in five countries, improves productivity and can be customised based on each hospital's protocols," he said.

UEM Edgenta shares were down 15 sen (4.4%) today to RM3.25, valuing the company at RM2.8 billion.