Berjaya Corp Bhd is looking to buy a 85% stake in DSG Holdings Ltd, which is mainly involved in water supply and wastewater treatment projects in China, for US$25.97mil (RM77.91mil).
The company told Bursa Malaysia yesterday that it entered into a share sale agreement to buy 8.5 million shares in DSG Holdings, which will be satisfied through a cash payment of US$12.99mil (RM38.96mil) and an issuance of 33.01 million new shares of RM1 in BCorp at an issue priced of RM1.18 per share.
The acquisition is in line with the company’s strategy to further expand its environmental and infrastructure related businesses.
“Currently, BCorp has KUB-Berjaya Enviro Sdn Bhd, which is involved in treatment of waste and the development, design, construction, management, operation and maintenance of sanitary landfill in Malaysia. BCorp also has several projects in China namely Sanshui Bainikeng Sanitary Landfill, Jinben Industrial Wastewater Treatment Plant and Jiangnan New District Wastewater Treatment Plant,” it said. The acquisition is expected to be completed in the second half of this year.
“In recent years, China has seen a significant improvement in its water and wastewater infrastructure, but still faces challenges for supplying safe and clean water to its 1.3 billion residents as well as maintaining sustainable development.”
