Questions surface over timing of UEM Edgenta’s SCR move

THE move to take UEM Edgenta Bhd private via a selective capital reduction and repayment (SCR) exercise must have left some of its shareholders questioning the timing of the proposal by its controlling shareholder, UEM Group Bhd, a wholly-owned subsidiary of sovereign wealth fund Khazanah Nasional Bhd.

On Nov 26, UEM Edgenta’s shares closed at 90.5 sen a share.

That evening, the asset management and infrastructure solutions provider filed its third-quarter results for the period ended Sept 30, 2025 (3Q25), reporting a net loss of RM94.1mil due to significant one-off, non-cash impairments of goodwill, non-current assets, and long-outstanding receivables.

After returning to profitability with a RM9.6mil net profit in 2Q25, following an RM18mil net loss in 1Q25, the 3Q25 results – its largest quarterly loss in over 22 years – would have startled many shareholders, dejected with the one-step-forward, two-steps-back trajectory.

So on Nov 27, it was not surprising that the stock price opened sharply lower at 82 sen and fell further to hit an intraday low of 77 sen, before substantial buying support emerged to put a floor to the slide.

Trading volume was six times higher day-on-day, and the stock later closed at 87 sen after UEM Edgenta announced that trading in its shares and structured warrants would be suspended at 4.27pm pending an announcement – namely, the SCR proposal.

On Nov 28, UEM Edgenta told the exchange that UEM Group, which holds a 69.14% stake, had proposed the SCR at RM1.10 per share in cash to be paid to the remaining shareholders.

Many who sold their shares on Nov 27 must be wondering why trading was not suspended before the market opened that morning.

The unusually strong buying support, including in the last five minutes before suspension, would also suggest there could have been some front running going on as well.

At its last traded price of RM1.02 at the time of writing, the stock still offers about a 6% return, minus any transaction costs, for those looking for a sure thing.