Khazanah partners South Korea’s SK ecoplant to accelerate Cenviro growth

KHAZANAH Nasional Bhd has entered into a strategic partnership with South Korea’s SK ecoplant Co Ltd, which will see the latter take up a 30% stake in Khazanah-owned Cenviro Sdn Bhd to spur its growth into a regional waste management powerhouse.

Khazanah said following a multilateral bid process, SK ecoplant was selected as the optimal minority shareholding partner to support Cenviro in its next level of strategic growth, in line with the aspirations of the industrial development of the national waste management sector.

“Upon completion, the strategic partnership will see SK ecoplant hold a 30% stake in Cenviro while Khazanah continues to be the majority shareholder of the waste management company,” Khazanah, the sovereign wealth fund of Malaysia, said in a statement in Kuala Lumpur, today.

It added that regulatory approvals will be sought as part of this transaction.

Khazanah MD Datuk Amirul Feisal Wan Zahir said for over 30 years, Cenviro has been the local leader in Malaysia’s integrated waste management sector, and the partnership with SK ecoplant would further elevate Cenviro’s business to be world class and be at the forefront of the sustainable waste management and recovery in the region.

“The growth plan for Cenviro echoes Khazanah’s mandate to develop globally competitive companies that are anchored on sustainability within our stable,” he added.

Khazanah said the strategic partnership is in line with its new long-term strategy under the ambit of Advancing Malaysia which was announced at the Khazanah Annual Review in March 2022.

Among others, it will undertake key initiatives to deliver impactful outcomes for the nation, including representing Malaysia at the global stage to facilitate flows of knowledge, networks and investment opportunities.

It is also in line with Khazanah’s strategy of creating a sustainable future wherein it hopes to play a leading role in shaping an equitable and responsible environmental, social and governance (ESG) transition for Corporate Malaysia.

Khazanah also shared that Cenviro is currently Malaysia’s leading circular waste management solutions provider, operating mainly in treatment and disposal, recycling and recovery of scheduled waste, and is highly driven towards ESG best practices.

This partnership, it said, is a significant step along Cenviro’s strategic roadmap for the region, combining SK ecoplant’s operational and technological capabilities with Cenviro’s robust local footprint.

“Both Khazanah and SK ecoplant believe that the partnership will reinforce Cenviro’s position as a leading scheduled waste management platform, facilitating its growth and creating value for all stakeholders.

“The investment into Malaysia by a reputable foreign investor is a further sign of confidence in the country,” said Khazanah.

SK ecoplant has over 44 years of experience in eco-friendly businesses in the field of integrated waste management, energy, engineering and construction with leading technologies and construction capabilities, as well as a global presence in 15 countries.

SK ecoplant’s global experience in waste management and continuous drive to strengthen its ESG credentials are the key factors that would help guide Cenviro in achieving its aspirations to become a regional leader in the waste management industry.

Khazanah is advised by BNP Paribas SA as financial adviser and Zaid Ibrahim and Co as legal adviser for the transaction. — Bernama / Pic Source: cenviro.com