KUALA LUMPUR (Sep 15): Berjaya Corporation Bhd is disposing of its entire 100% equity interest in China-based Berjaya Green Resources Environmental Engineering (Foshan) Co Ltd (BGREE) for 78.5 million renminbi (RM50.87 million).

In a filing with Bursa Malaysia, Berjaya Corp said the  disposal to Foshan Water & Environmental Investment Co Ltd (FWEI) is an opportunity for the group to realise its investment in BGREE to be utilised for the group's working capital.

The group said the agreed sale amount was based on the enterprise value of BGREE of about 167.9 million renminbi after taking into consideration the valuation of the business, earnings potential and future prospects of BGREE as well as after adjusting for the debts and cash of BGREE.

As at Aug 31, BGREE had debts with the group amounting to 24.8 million renminbi, and FWEI has agreed to undertake the repayment of the debt in full.

BGREE was incorporated in 2010 to underatke wastewater treatement. It was awarded a 25-year concession, which expires in March 2039, to develop, operate and manage Jinben Wastewater Treatment Plant in Xinan Sub-district, Sanshui District under the Build-OperateTransfer concept.

Meanwhile, FWEI was incorporated in Foshan, Guangdong in 1964. It is principally involved in raw water development and supply, interregional water transfer, urban water supply and drainage, sewage treatment, sludge treatment, and other water and environmental protection related services.  

Berjaya Corp's shares closed 0.5 sen higher today at 34 sen for a market capitalisation of RM1.63 billion.