UEM Group Bhd is exiting the end-of-life vehicle recycling business by selling its entire stake in its unit Special Builders Sdn Bhd.
It said on Thursday the disposal of the unit would be done through an open tender process to a qualified Bumiputera entrepreneur to encourage entrepreneurship and boost the value of Bumiputera equity.
UEM Group said SBSB is involved in the end-of-life vehicle recycling, recovery and disposal services (ELV).
“It was chosen for this divestment exercise as it could offer an opportunity for the acquiring party to tap into the future upside of ELV Services in Malaysia,” it said.
SBSB operates a plant in Bandar Proton, Tanjung Malim. Its revenue is derived mainly from selling scrap metal and parts from scrapped vehicles.
Since it was incorporated in 2008, SBSB has scrapped 47,464 vehicles.
“The divestment of SBSB is in line with UEM Group’s overall divestment strategy of disposing non-core assets to realign its operations according to the four identified core-businesses - expressways, township & property development, engineering & construction, and asset & facility management,” said UEM Group.
It said the divestment was part of the government’s strategy to sell 10 non-core assets to Bumiputera companies.
UEM Group said the potential buyer of SBSB should fulfil several pre-qualifying criteria which include being a 51 per cent Bumiputera-owned and managed company or Bumiputera individuals, with a good financial track record and experience in the relevant sector.
