Faber

It is set to boost its integrated facility management business when its acquisition of major shareholder UEM Group Bhd’s asset and facility management (AFM) businesses is completed in the second half of 2014.

The proposed acquisition of two of UEM’s cash generating units – PPROPEL and OPUS Group will transform Faber into Malaysia’s largest AFM player.

Propel is in the business of infra maintenance, with its core expertise in highway maintenance. It has also expanded into other sectors of the industry such as airside maintenance, commercial building maintenance and plant shutdown maintenance in the oil and gas industry.

Opus is primarily involved in asset development and management, and consultancy services for road and civil and building related works. It has operations spanning across Malaysia, New Zeland, Australia and UK and Canada.

Faber is in need of new businesses as its current operations (May 2014) are stagnating.

The group is known for its hospital support services provided to government hospitals and healthcare institutions as well as the development of the already matured Taman Desa neighborhood in KL. As its landbank is depleting, Faber had highlighted that its future earnings from HSS could decline as it would hold only a 40% stake in its latest joint venture HSS concessions in Sabah and Sarawak.

The acquisition of 100% equity interest each in Propel and Opus will amount to rm1.15 billion.

As at Dec 31 2013, Faber’s cash pile stood at rm487 million, with virtually zero borrowings.

Since the acquisition will be earnings accretive, Faber’sFY2014 earnings per share could improve.

Till May 2014 it has bagged rm169 million worth of piling contarcts, bringing its order book to rm300 million. One major coup was a rm74 million contract to undertake foundation works for the proposed 118 storey Warisan Melaka tower project in KL.

The group was sitting on a net cash of rm110 million as at Dec 31 2013.