Friday 29 Mar 2024
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KUALA LUMPUR (March 6): Berjaya Corp Bhd (BCorp) is selling off its entire 85% stake in China-based DSG Holdings Ltd, which is involved in wastewater treatment, for RM265.99 million cash.

Earthlodge Investments Ltd Elque Resources Sdn Bhd, which owns the remaining 15% stake, is also disposing of its equity interest.

In a filing with Bursa Malaysia, BCorp said a sale and purchase agreement was signed today between the parties and Besino Environment Ltd for divestment for a combined total of RMB508 million (about RM312.93mil).

BCorp said the proceeds from the sale of its shares shall be used for working capital, adding that the proposed disposal provided an opportunity for the group to realize its investment in DSG.

DSG’s subsidiaries are principally involved in the production and supply of potable water, wastewater treatment projects and provision of advisory and management services on the construction projects in the China.

The proposed disposal is not subject to the approval of BCorp shareholders but it is subject to the approvals from the authorities in China.

BCorp’s shares dropped 0.5 sen or 1.56% today to 31.5 sen, with 18.53 million shares traded, bringing it a market capitalization of RM1.54 billion.

 

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