Uzma embarks on internal reorganisation

December 15, 2017 | By | Reply More

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PETALING JAYA: Uzma Bhd’s internal reorganisation exercise will see units from its wholly-owned subsidiary Uzma Engineering Sdn Bhd being transferred into the holding company and a new wholly-owned subsidiary Uzma Resource Solutions Sdn Bhd.

Uzma’s board of directors said in a Bursa Malaysia filing that its cost centers or departments from Uzma Engineering, namely the finance, human resources, business development, information technology and administration would be transferred to the holding company.

Meanwhile, the current consultancy and resource solution business under Uzma Engineering will be transferred to the new wholly-owned subsidiary Uzma Resource Solutions Sdn Bhd.

The board said the internal reorganisation exercise involves the transfer of staff employed under Uzma Engineering to Uzma with the intention that all cost of maintaining the shared-service functions be transferred to the holding company.

“The internal reorganisation was proposed to restructure the current set-up of the group’s core businesses and to streamline its structure and management,” the board said on the rationale behind the corporate exercise.

At present most of the group’s core projects are held under Uzma Engineering, which also houses most of the Petronas licenses.

“To mitigate over concentrating of contracting risk in Uzma Engineering, it is crucial to transfer some of Uzma Engineering’s businesses to individual entity according to its nature of business,” it noted.

The internal exercise will not impact the group’s earnings for the financial year ending June 30, 2018.

Uzma’s shares remained at RM1.32 with some 173,900 shares done.

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