UEM Edgenta Bhd has secured contracts for the provision of hospital support services in Singapore, with the contracts totalling more than RM280 mil.
The announcement, made via a Bursa filing dated July 9, was that UEMS Solutions Pte Ltd (UEMS), an indirect 97.46% owned subsidiary of the company, had entered into said contracts on July 8. The contracts are to provide services, including housekeeping and portering, to the Singapore Ministry of Health’s restructured hospitals.
The value is estimated between RM264 mil and RM284 mil, with the final value subject to the actual manpower resources deployed.
The duration of the contracts ranges from two years and three months to three years and three months, with options to extend for three to five years. The contracts will commence between July 1, 2020 and April 1, 2021.
“The contracts are expected to contribute positively to the future earnings and net assets per share of UEM Edgenta,” said the group, adding that the risk factors are mainly operational and include changes in political, economic and regulatory conditions.
“UEMS has extensive experience and a strong track record for undertaking both housekeeping and portering services. To mitigate the operational risk, the company shall ensure strict compliance to its operational policies and procedures in the delivery of the services required under the contracts,” said UEM Edgenta.
At the end of the trading day, UEM Edgenta’s shares were last done at RM1.98, down 3 sen, with 279,100 shares traded. – July 9, 2020
