Saturday 13 Apr 2024
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KUALA LUMPUR (Dec 13): Engineering services provider AWC Bhd has obtained its shareholders' approval to buy the remaining 49% equity interest in Stream Group Sdn Bhd not already owned by AWC from Premium NXL Sdn Bhd (PNSB).

Shareholders have also agreed to its acquisition of a 51% equity interest in Premium Patents Sdn Bhd from PNSB and Premium Deluxe Sdn Bhd (PDSB).

It will be paying a collective RM110 million, cash, for the acquisitions — the most it has spent on asset acquisitions so far, the group said in a statement following the conclusion of its extraordinary general meeting on Wednesday.

The acquisitions will make Stream Group, which specialises in the design and installation of automated waste collection systems (AWCS), its wholly owned subsidiary. And it will have 51% interest in Premium Patents, which is involved in registering industrial methods, systems or processes patents and trademarks worldwide, and licensing activities. Premium Patents also owns the patent to the 'WasteStream Shuttle' system that AWC believes can reduce the energy cost of AWCS by about 70%.

“Having been associated with the Stream Group since 2004, we have been involved in this business for close to 20 years and have played an instrumental role in transforming them into a homegrown Malaysian champion that has a presence and boasts a healthy installed base of their proprietary AWCS in various landmark projects across multiple countries worldwide such as Malaysia, Singapore, China, UAE, Qatar, Australia, and India.

“Going forward, we expect to allocate more resources and increase our effects to capitalise on the rising demand for Stream Group’s AWCS. We look forward to venturing into untapped markets like Indonesia and the Kingdom of Saudi Arabia where we hope to replicate the large-scale adoption of Stream Group’s AWCS like in Al Raha Beach, Abu Dhabi,” said AWC chief executive officer Datuk Ahmad Kabeer.

The group is expecting to complete the acquisitions in the first quarter of next year (1Q2024).

It also said the acquisitions are in line with its strategy to enhance profitability by improving returns from the waste management business that is considered a key focus of the company's environmental, social and governance (ESG) initiatives-related businesses, and to facilitate the continuing growth of the group's core business as a diversified ESG player.

Shares in AWC closed 0.5 sen or 0.77% lower to 64 sen, giving it a market capitalisation of RM208.12 million. Year to date, the stock has climbed 37.23%.

Edited ByTan Choe Choe
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