UEM Edgenta managing director and CEO Datuk Azmir Merican said the disposal would strengthen the group’s balance sheet and allow the company to focus on organic growth moving forward.

“Following the disposal of OIC, we will focus on streamlining our operations and drive organic growth by reallocating our resources in three core areas, namely healthcare, infrastructure and real estate,” he said.

He was speaking to reporters after the company’s shareholders meeting yesterday.

UEM Edgenta plans to utilise the bulk of the proceeds to pare down its debt from last year’s acquisition.

About 415.2 million ringgit of the proceeds will be used for repayment of borrowings and to significantly pare down UEM Edgenta’s gearing to 0.22 times from 0.64 times.

The remainder of the proceeds will be used for working capital and the disposal of asset expenses. Azmir said he expects the disposal to be completed by the end of the year.

When asked about a potential special dividend, he said the decision will be made upon completion of the proposed disposal.