BCorp’s joint CEO Vivienne Cheng said the proposed disposal would provide an opportunity for the BCorp group to monetise its investment in BEnviro with an estimated gain of about RM490.74 million.

She also said the proposed disposal is expected to improve the group’s earnings, net assets and gearing significantly.

“The selling of BEnviro will generate substantial financial returns from BCorp’s investments. The gains will enhance its net assets while the utilisation of the proceeds is expected to contribute positively to the group’s future earnings.

“The value of RM700 million was 18.4 times the price-to-earnings ratio agreed upon based on the next three years’ profit guarantee of RM38 million per annum,” she said at the signing ceremony between BGroup and Naza for the ownership transfer of BEnviro here today.

BEnviro is involved in various environmental business segments. They include solid waste management with engineered sanitary landfill, landfill gas management via renewable energy generation from landfill gas, and scheduled waste management through recycling, treatment and disposal.

BEnviro’s waste management projects include the Bukit Tagar Sanitary Landfill in Selangor.

Upon the completion of the proposed disposal, both BGroup and BEnviro will set up a joint venture company – with BGroup and BEnviro owning 49% and 51% respectively – to collaborate in all new projects including but not limited to sanitary landfills, environmental and waste management in Malaysia and overseas.

“Upon completion of the proposed disposal, we will continue to explore new projects with BEnviro via the joint venture and be committed to remaining and providing environmental engineering work services,” said Cheng.

Naza’s group executive chairman SM Nasarudin SM Nasimuddin said via this proposed acquisition, Naza would leverage BEnviro’s extensive operational infrastructure, technological advancements, and talented workforce to ensure business continuity.

“This acquisition reinforces Naza’s dedication towards strategic growth of its business reach (by) venturing into the provision of comprehensive waste management solutions and promoting environmental sustainability.

“Waste management businesses have predictable, steady income streams and the industry is non-cyclical in nature, both of which are key considerations for this acquisition,” he said.