Faber Group Bhd’s earnings base is expected to get a shot in the arm from the injection of Opus Group Bhd and Projek Penyelenggaraan Lebuhraya Bhd (Propel) into it.
UEM Group Bhd had proposed to dispose 100% equity interest each in Propel and Opus to Faber for RM1.15bil via the issuance of 450.5 million new Faber shares at an issue price of RM2 per share as well as a cash consideration of RM250mil.
Calculations show that Faber’s share base would increase to 813.5 million from the current 363 million upon the completion of the proposal, with UEM Group increasing its effective stake in the company to 70.7% from 34.3% currently.
Financial year 2014 (FY14) earnings per share (EPS) would improve by 46.5% despite the enlarged share base after factored in a potential combined net profit contribution of RM110mil from Propel and Opus. This would more than triple Faber’s previous FY14 earnings base of RM48.2mil.
Nevertheless, should the proposals materialise, Faber would emerge as Malaysia’s largest asset and facility management player with a presence in three core sectors – healthcare, infrastructure and commercial.
Opus is mainly involved in the asset management of transportation, infrastructure and built environment assets and facilities, operating in Malaysia, New Zealand, Australia, the United Kingdom and Canada.
Notable projects include consultancy services for the Kelana Jaya-Ampang LRT extension, highway maintenance and management in New Zealand and road asset management in Australia.
Opus also owns a 60% stake in Opus International Consultants Ltd, which is listed on the New Zealand stock exchange with a market capitalisation of NZ$256mil (RM640mil).
Propel, on the other hand, is the largest highway maintenance company in Malaysia, having been the maintenance provider for the North-South Expressway since 1988.
No comments:
Post a Comment