KUALA LUMPUR (May 3): Naza Corp Holdings Sdn Bhd has completed the acquisition of a 100% stake in Berjaya Enviro Holdings Sdn Bhd (BEnviro) from Berjaya Corp Bhd for RM700 million in cash, marking its entry into the green economy with a focus on municipal and scheduled waste, as well as the waste-to-energy sector.

The acquisition also sees Naza taking over seven entities under BEnviro, namely, BPJ-Berjaya Sdn Bhd, Berjaya Eco Services Sdn Bhd, Save the Sea Sdn Bhd, Berjaya Enviro Parks Sdn Bhd, Amita Berjaya Sdn Bhd, J&T Berjaya Alam Murni Sdn Bhd and Berjaya Energies Sdn Bhd.

“Through this acquisition, Naza will be able to offer comprehensive solutions to meet Malaysia's waste management needs, leveraging on the extensive operational infrastructure, technological advancements, and talented workforce of BEnviro and its seven subsidiaries," Naza group executive chairman SM Nasarudin SM Nasimuddin said in a statement on Friday.

"We recognise waste management as a cornerstone of the green economy, providing stable income streams unaffected by economic cycles," he added.

Under its new waste management business, Naza will continue to operate the 659-acre integrated waste management eco park – the Bukit Tagar Enviro Park (BTEP).

According to Naza, the business also includes landfill gas-to-energy operations, expanding capacity in the scheduled waste management sector.

Separately, in a filing with Bursa Malaysia on Monday, AmInvestment Bank Bhd had announced on behalf of BCorp completion of the disposal following full settlement of the balance purchase price by Naza.

On July 17 last year, BCorp's wholly-owned subsidiary Berjaya Group Bhd and Naza had entered into a share sale agreement to dispose of a 100% stake in BEnviro, confirming a previous report by The Edge, quoting sources.

It was said that the disposal is part of BCorp’s three-year strategic transformation plan to divest non-core businesses. The plan was initiated by former CEO Abdul Jalil Abdul Rasheed in 2021, with a target to divest RM5 billion worth of assets over a five-year period.

BCorp is expected to lock in a gain of RM490.74 million from the sale, which it has already allocated towards paring down debt.

The deal was deemed a related party transaction, in view of the relationship between BCorp founder and major shareholder Tan Sri Vincent Tan Chee Yioun and Naza’s deputy group executive chairman SM Faliq SM Nasimuddin.

Faliq, the youngest of the three sons of the late Tan Sri SM Nasimuddin Kamal SM Amin, is married to Tan’s daughter Chryseis Tan Sheik Ling, who is an executive director and a shareholder of BCorp.

It is worth noting that in 2020, BCorp had acquired the 40% stake it did not own in BEnviro from KUB Malaysia Bhd for RM80 million, cash. Based on back-of-the-envelope calculations then, the deal valued BEnviro at almost RM200 million, indicating that BCorp had raked in more than RM500 million from the disposal of the asset.