KUALA LUMPUR: Malakoff Corp Bhd has cleared the key hurdle to buy Alam Flora Sdn Bhd from DRB-HICOM Bhd for RM944.61 million.
Malakoff shareholders yesterday approved the acquisition that will hasten the group’s expansion into environmental-related business and push into the renewable energy sector.
"We see opportunities between Malakoff and Alam Flora to develop waste-to-energy (WTE) projects," Malakoff chairman Datuk Hasni Harun said in a statement today.
He added that independent power producer Malakoff's latest move was in line with Malaysia’s aspiration to increase the share of renewable energy mix from the current two per cent to 20 per cent, by 2025.
Hasni explained that with the prospects of economic development and population growth, Malaysia would need to look beyond waste disposal and landfills towards a more sustainable waste management especially through WTE projects.
Alam Flora holds a 22-year concession, ending August 2033, to collect garbage and public area cleansing in Pahang, Kuala Lumpur and Putrajaya.
Through its unit DRB-HICOM Environmental Services Sdn Bhd, Alam Flora operates eight landfills, one transfer station, a leachate treatment plant and two incinerator plants.