The potential disposal by UEM Group Bhd of a stake in Faber Group Bhd will only involve changes in the latter's shareholding structure without impacting its existing business direction.
In a note released today, OSK Research said the potential disposal was in the pipeline as it was within UEM'S restructuring plan to focus on its core business.
"The market seems to have unjustifiably over-reacted to the rumour, especially since the company's fundamentals and future prospects remain intact," it said.
OSK said the disposal was not likely to happen soon as the decision whether or not Faber's concession was renewed by the government would only be known in October.
"The concession renewal will probably be a requirement before a buyer agrees to the pricing.
"We believe that in the event UEM decides to dispose of its stake, it will be in 'as is' form, and not a partial sale of certain divisions of Faber's business," it said.
It said concerns that UEM would only sell Faber's concession business and keep the property business were overblown.
OSK said with Faber's diversified business comprising integrated facilities management for health concessions and non-healthcare as well as property development, it would be rather difficult for UEM to find a strategic buyer.
"We believe the disposal would most likely attract passive buyers," OSK said.
OSK said with Khazanah Nasional Bhd as the indirect major shareholder of Faber, there was a possibility the disposal might be a related-party transaction, whereby it could involve the transfer of equity interest from UEM to Khazanah. -- Bernama
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