KUALA LUMPUR (Jan 9): UEM Group Bhd’s plan to take UEM Edgenta Bhd (KL:EDGENTA) private is advancing with the board of UEM Edgenta set to table the proposed selective capital reduction and repayment exercise at RM1.10 a share for shareholders' approval.

On Jan 9, the board’s non-interested directors resolved to table the proposal at an extraordinary general meeting (EGM). Berjaya Securities Sdn Bhd has been appointed as the independent adviser to assess the fairness and reasonableness of the offer.

The exercise follows UEM Group Bhd’s initial announcement on Nov 28, 2025. According to CIMB Investment Bank Bhd, which announced the proposal on behalf of the company, the exercise entails a total payout of RM282.32 million to minority shareholders.

UEM Group — the majority shareholder and wholly-owned subsidiary of Khazanah Nasional Bhd — will not receive any payment under the exercise. Upon completion, UEM Group will assume full ownership of UEM Edgenta and subsequently delist the company from Bursa Malaysia’s Main Market.

As at Dec 31, 2025, UEM Group and persons acting in concert held 69.14% of UEM Edgenta, while the remaining 30.86% was held by minority shareholders eligible for the cash repayment.

All shares other than those held by UEM Group will be cancelled once the exercise is completed, resulting in UEM Group owning 100% of the company.

UEM Group said the privatisation would provide greater flexibility to manage UEM Edgenta’s business amid a challenging operating environment, citing subdued post-pandemic performance, rising costs and lower dividends compared with pre-2020 levels.

The RM1.10 offer price for the remaining 257 million shares (30.86% stake), represents a 6.8% premium over the last traded price of RM1.03, and a 26.4% premium over the 87 sen level at the time of the privatisation announcement on Nov 27, 2025.

The exercise will be funded through a combination of shareholder advances from UEM Group and internally-generated funds, with CIMB confirming that sufficient financial resources are in place to fully settle payments to entitled shareholders.

The proposal remains subject to minority shareholder approval, High Court confirmation and relevant regulatory consents, and is expected to be completed in the second quarter of 2026 if all conditions are met.

UEM Edgenta’s share price closed unchanged at RM1.03 a share on Friday, valuing the company at RM856.6 million.