Its Vice-Chancellor, Prof Mohamed Mustafa Ishak said the move is aimed at increasing the company’s profit, as well as to aid UUM in generating its own income.

“Negotiations for the takeover is now in the final stage,” he said in his speech at the branding of EDC Hotels & Resorts by Bukit Kayu Hitam assemblyman Ahmad Zaini Japar here today.

Mohamed Mustafa said plans were also afoot to build a hotel in Langkawi in tandem with the university’s move to strengthen its business scope in the hotel industry.

“Last year, UMHSB generated a net income of almost RM7 million through various businesses, including its hotel business from EDC Hotel and The Universiti Inn in Sintok,” he added.

The UMHSB group, he said, was also involved in the property business, as well as tourism and hospitality, agriculture, retail, film production and laundry service.

He said the university-owned company had been involved in business since 10 years ago.

At the event, UMHSB chief executive officer Suardi Mohamed Zakarian handed over dividends amounting to RM650,000 to UUM.