KUALA LUMPUR: KUB Malaysia Bhd has disposed its entire 40% stake in KUB-Berjaya Enviro Sdn Bhd to partner Berjaya Group Bhd for RM80mil cash.
The deal gives Berjaya Group full ownership of the solid waste disposal facility in Bukit Tagar, Selangor that is operating under a 30-year concession granted by the federal government expiring on Jan 19, 2044.
KUB, in a filing with Bursa Malaysia today, said proceeds from the disposal would be use for working capital, fund expansion and retire its existing loans.
“The breakdown of the utilisation has not been determined at this juncture and depends on the operating and funding requirements of the Group,” it said.
KUB said the disposal enabled the group to realise its investment that is not considered strategic or synergistic to the other operations of the group.
“In addition, the disposal represents a good opportunity for KUB to unlock a significant gain in the value of the investment and strengthen its liquidity and cash flow position,” it added.