KUALA LUMPUR: Naza Corp Holdings Sdn Bhd is buying Berjaya Corp Bhd (BCorp)'s waste management business Berjaya Enviro Holdings Sdn Bhd (BEnviro) for RM700 million cash, marking its entry into the business.
The announcement comes less than a month after Naza Corp announced that it would be venturing into a durian plantation project under Naza Agro Plantation.
The deal will see BCorp post a gain of RM490.74 million from the sale.
Naza Group executive chairman SM Nasarudin SM Nasimuddin said Naza Corp targets to retain the management and talent in BEnviro and its seven subsidiaries for business continuity and to leverage on the extensive operational infrastructure and technological advancements of the company.
He said this acquisition reinforces Naza Corp's dedication towards strategic growth of its business reach – venturing into the provision of comprehensive waste management solutions and promoting environmental sustainability.
"Naza Group has been exploring new sectors that align with its vision of sustainable development, resource efficiency, and upholding the highest standards of environmental stewardship. "Waste management, a crucial aspect of the Green Economy, which is expected to see a sizable growth, perfectly aligns with our vision," Nasarudin added at a press conference after the signing ceremony of the sale and purchase agreement between BCorp's subsidiary Berjaya Group Bhd (BGroup) and Naza Corp here, today.
Once the deal is completed, BGroup and BEnviro plan to set up a joint venture company which will be majority owned by BEnviro to collaborate in new projects which include but are not limited to sanitary landfills, environmental and waste management in Malaysia and overseas,
BEnviro operates one of the top sanitary landfills and integrated waste management eco parks in the country.
The business also includes landfill gas-to-energy operations, expanding capacity in the scheduled waste management sector.
The company operates a 266.6 hectare integrated waste management eco park in Bukit Tagar, Selangor, cutting acrossMunicipal Solid Waste (MSW), Scheduled Waste (SW) and Waste to Energy (WTE) Sectors with multiple lines of adjacent businesses.
"After the completion of this proposed disposal, we will continue to explore new projects with BEnviro through a joint venture company (JV Co) and are committed to remain and provide environmental engineering work services."
"The decision to dispose of BEnviro was made after careful consideration and analysis of the current market conditions and the strategic goals of the BCorp group," BCorp's joint chief executive officer Vivienne Cheng said.
The proposed disposal by BCorp is deemed a related party transaction pursuant to Paragraph 10.08 of the Main Market Listing Requirements of Bursa Malaysia Securities Bhd.
Accordingly, BDO Capital Consultants Sdn Bhd has been appointed to act as the Independent Adviser to advise non-interested directors and non-interested shareholders of BCorp on the fairness and the reasonableness of the proposed disposal, and whether it is detrimental to the non-interested shareholders of BCorp.