UBG gets nod to buy controlling stakes in Putrajaya, Loh&Loh

THE Securities Commission has given UBG Bhd the green light to buy controlling stakes in Putrajaya Perdana Bhd and Loh & Loh Corp Bhd paving the way for it to be transformed into a major construction group.

The permission triggers a series of proposals that will ultimately see a Middle Eastern investor - Abu Dhabi-Kuwait Malaysia Investment Corp (ADKMIC) - becoming a major shareholder in UBG.

This bodes well for UBG as it will be able to pursue development opportunities, running into the billions of dollars, in Abu Dhabi and Kuwait. This also hedges it from a potential slowdown in local projects.

ADKMIC plans to maintain a stake of at least 35 per cent in UBG over the next five years.

UBG has been a cash-rich company without a core business since selling its entire stake in banking group Rashid Hussain Bhd last year. The sale resulted in UBG holding a cash balance of about RM800 million.