MESB TO EXPAND INTO WASTE RECYCLING BUSINESS

KUALA LUMPUR, Sept 22 (Bernama) -- MESB Bhd has entered into two conditional agreements, paving an avenue for the company to further expand into the waste recycling business to bolster earnings stream and market share in such business segments following a business diversification sought in April 2021.

In a filing with Bursa Malaysia, MESB said the first proposal entailed a conditional share sale agreement for a total cash consideration of RM46 million, involving the proposed disposals of the entire equity interests in Active Fit Sdn Bhd and MESB Capital and Development Sdn Bhd as well as 45 per cent equity interest in Miroza Leather (M) Sdn Bhd to Trend Navigator Sdn Bhd. 

“The board is of the view that the proposed disposals represent an opportunity for the company to unlock and realise part of its investment in apparel-related businesses and at the same time, the proceeds arising therefrom can be utilised to part finance the proposed acquisitions,” it said.

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MESB said it also entered into a conditional share purchase agreement for the proposed acquisitions of the entire equity interests in NU Recycle Sdn Bhd, Formidex Sdn Bhd and Waier Trading Sdn Bhd from Lotus Essential Sdn Bhd, Datuk Wong Sak Kuan and Lee Wai Fun  Datuk Wong Sak Kuan for a total cash consideration of RM51 million.

Besides that, it said MESB will also be procuring its shareholders’ mandate for recurrent related party transactions expected to be entered into by MESB and its subsidiaries with companies related to Wong following the completion of the proposed acquisitions. 

It said this is an addition to the ongoing recurrent related party transactions, in which MESB had procured the general mandate from its shareholders on Dec 7, 2021. 

“Following the completion of the proposed disposals, MESB will still retain a controlling 55 per cent equity interest in Miroza, which carries a brand portfolio comprising Crocodile, Ducati, Alain Delon, Pierre Cardin, Feraud, Giamax, Giossardi and Tocco Toscano,” it said. 

It added that the company is optimistic about the long-term prospects of its recycling business segment, particularly with the acquisitions of the acquiree companies, which would contribute positively to the future financial performance of the company.

-- BERNAMA