PETALING JAYA: Berjaya Corp Bhd (BCorp) is disposing its entire 100% equity interest in Berjaya Green Resources Environmental Engineering (Foshan) Co Ltd (BGREE) to Foshan Water & Environmental Investment Co Ltd for RMB78.50 million (about RM50.87 million).
BGREE is involved in wastewater treatment, while Foshan Water & Environmental Investment is engaged in raw water development and supply, sewage treatment and other water and environmental protection related services.
BCorp said in a filing with Bursa Malaysia today that the proposed disposal will provide an opportunity for the group to realise its investment in BGREE. The group said its original cost of investment in BGREE as at April 30, 2017 is RMB47.60 million, which was incurred since 2010.
BCorp intends to use the cash proceeds from the proposed disposal for the group’s working capital, and upon completion of the proposed disposal, BGREE will cease as the subsidiary of the group.
The proposed disposal is expected to result in a pre-tax gain of about RM42.29 million. The proposed disposal is expected to be completed by first quarter of 2018.
BCorp gained 1.49% to close at 34 sen today with a total of 5.65 million shares traded. It has a market capitalisation of RM1.61 billion.