Tuesday 30 May 2023
By /
main news image

KUALA LUMPUR (Apr 3): Nextgreen Global Bhd’s unit has set up a special purpose vehicle (SPV) to develop 20 oil palm waste collection and processing centres throughout Malaysia.

The SPV named “GTC Biomass Bhd" was established by Nextgreen’s wholly owned subsidiary Nextgreen Biomass Sdn Bhd (NGBSB) via a shareholders agreement with three other parties, the company said in a filing to the exchange on Monday (April 3). 

The three parties are Greentech Malaysia Alliances Sdn Bhd (GTMASB), Koperasi Sahabat Amanah Ikhtiar Malaysia Bhd (KOOP SAHABAT) and Koperasi Perkhidmatan Setia Bhd.

In a separate statement, Nextgreen said the shareholding of the SPV will be Nextgreen Biomass Sdn Bhd (65%), GTMASB (10%), KOOP SAHABAT (18%) and Koperasi Perkhidmatan Setia Bhd (7%).

NGBSB through its related company Nextgreen Pulp & Paper Sdn Bhd (NGPP) will purchase all oil palm waste or derivatives from the centres.

GTMASB will facilitate the RM200 million sukuk/bonds for the development of four of the said oil palm waste collection and processing centres.

KOOP SAHABAT will lead and work together with other parties to obtain crowdfunding to invest in the SPV.

“GTMASB, KOOP Sahabat and Koperasi Perkhidmatan Setia Bhd have provided us tremendous support in our zero-waste venture and we wish to thank them. We look forward to the opening of the first collection centre,” said Nextgreen’s managing director Datuk Lim Thiam Huat.

He added that in line with the opening of its Green Technology Park (GTP), which is equipped with state-of-the-art technology in the conversion of oil palm empty fruit bunches into pulp and paper, Nextgreen believes that entering into a joint venture for the establishment of oil palm waste collection centres is a step in the right direction for the company.

“Overall, this project is expected to contribute positively to the future earnings of NGGB,” he added.

The SPV company will issue Preference Shares through Kenanga Investor Bhd.

Shares of Nextgreen closed unchanged at 99 sen a piece, giving the company a market capitalisation of RM817.48 million.

Edited ByAdam Aziz
      Text Size