The acquisition of ESG is part of PRG Group’s long-term strategy to venture into the HVAC-EMS industry, an energy efficiency business

by AKMAR ANNUAR / graphic by TMR

WITH the acquisition of Singapore Energy Solution Global Ltd (ESG), PRG Holdings Bhd enhances group earnings as the group sees growing demand and expanding market in the energy efficiency business both in Malaysia and Singapore.

PRG group executive vice-chairman Datuk Lua Choon Hann commented that the acquisition of ESG is a milestone for the company to boost energy efficiency in buildings as it is an inexpensive and low-impact way to reduce carbon emissions and climate pollution.

“I believe ESG concerns are becoming more urgent than ever and our ESG proposition will definitely create value for PRG Group going forward.

“In the near term, we see a growing demand and an expanding market in the energy efficiency business in both the Malaysia and Singapore market,” he said.

(From left) PRG Independent non-ED Tan Sri Mazlan Lazim, Furniweb non-executive chairman Datuk Lim Heen Peok, Lua, PRG property and construction MD Datuk Wee Cheng Kwan

He added that based on China Insights Consultancy, the market size of the heating, ventilation and air conditioning, energy management system (HVAC-EMS) industry in Malaysia is expected to pick up from US$205.9 million in 2021 to US$434.8 million (RM1.99 billion) by 2026, representing a compound annual growth rate (CAGR) of 16.1% between 2021 and 2026.

“In Singapore, the market size is expected to double from US$113.4 million in 2021 to US$235.5 million by 2026, representing a CAGR of 15.7% between 2021 and 2026,” he concluded.

As at Aug 29, 2022, the acquisition of the remaining 6,275 shares or 62.75% of the equity interest in ESG for HK$58.19 million (RM31.42 million) was completed via its 50.45%-owned subsidiary Furniweb Holdings Ltd.

On Dec 13, 2021, Furniweb acquired through cash, 37.25% equity interest in ESG for a total consideration of up to HK$9.56 million.

The acquisition of ESG is part of PRG Group’s long-term strategy to venture into the HVAC-EMS industry, an energy efficiency business. 

Furniweb is a 50.45%-owned subsidiary of PRG and it is currently listed on the GEM of The Stock Exchange of Hong Kong Ltd.

PRG said this acquisition was satisfied through cash and issuance of new ordinary shares in Furniweb and the company is able to fully consolidate ESG’s earnings.