SOVEREIGN fund Khazanah Nasional Bhd’s strategy of disposing of non-core assets continues with a plan to sell a stake in Cenviro Sdn Bhd, and UEM Edgenta Bhd, Taliworks Corp Bhd and Singaporean company Blue Planet Environmental Solutions Pte Ltd are among the potential competitors who have the waste in mind management company, according to sources familiar with the matter.

On March 28, 2014, Khazanah took over the entire stake in Cenviro from the UEM Group. The restructuring was part of the Fund’s sustainable development initiative in line with the 10th Malaysia Plan and Economic Transformation Program, while Cenviro carried out its core business under Khazanah after restructuring and renaming of companies.

According to the Cenviro website, on March 28, 2014, Khazanah acquired the entire stake in the company from the UEM Group. Cenviro owns and operates Malaysia’s first integrated toxic and hazardous waste disposal center in Port Dickson through its subsidiary Kualiti Alam Sdn Bhd. Negeri Sembilan, which has been in operation since 1998.

When asked by The Edge on the matter, Khazanah says, “We are in a closed process to potentially sell an interest in a party that meets our preferred partner criteria. As the process is still ongoing and confidentiality agreements are in place, further disclosures will be made in due course. “

In the meantime, the potential candidates were either non-binding or withheld their knowledge when asked. “We can’t comment,” said UEM Edgenta in an email response to inquiries from The Edge.

The water treatment, toll concession, construction and engineering company Taliworks denies any knowledge of the matter and says that it “is not negotiating with Khazanah to acquire an interest in Cenviro Sdn Bhd and is in fact unaware that Khazanah is selling”. their stake in Cenviro ”.

Blue Planet, in which OSK Ventures International Bhd (OSKVI) has a strategic stake of an undisclosed amount, did not respond to questions from The Edge.

Blue Planet is a Singapore-based regional waste management company focused on technology-driven end-to-end waste solutions such as:

Previous news reports showed that Covid-19 clinical waste accounted for 27.8% of total clinical waste collected by Edgenta Mediserve Sdn Bhd (EMSB), UEM Edgenta’s wholly owned unit for medical support services, in April 2020. Under the current concession agreement, EMSB manages clinical waste from 33 government hospitals as well as nine clinics in the northern region of Peninsula Malaysia, 12 private hospitals, 694 private clinics and 83 Department of Defense clinics across the country.

Cenviro also reportedly said that its wholly owned waste management unit, Kualiti Alam, has indicated that the Covid-19 waste it has collected from private health facilities has increased in volume.

Since UEM Edgenta’s EMSB is a Ministry of Health (MoH) appointed concessionaire for the disposal of clinical waste from public medical facilities, it makes sense for the asset management and infrastructure solutions company to have Cenviro join its portfolio.

Taliworks has a 35 percent stake in SWM Environment Holdings Sdn Bhd (SWMEH), a waste management and public cleaning service provider in Johor, Negeri Sembilan and Melaka, through an existing waste management branch. SWMEH owns SWM Environment Sdn Bhd, the concession holder for the provision of waste collection and public cleaning services for these countries until August 31, 2033.

Cenviro’s company search data shows that for the fiscal year ended December 31, 2019, Cenviro posted net income of 37 million 86 million and 253 million RM. The company recorded net profits of 78.96 million RM, 75.57 million RM and 46.2 million RM, respectively, from the 2015 to 2017 financial years.

Khazanah’s ongoing “non-critical, non-strategic” asset relocation exercise, which began when the Pakatan Harapan government took office in 2018, resulted in the divestment of its entire 100% stake in SilTerra Malaysia Sdn Bhd to Dagang Nexchange Bhd and China’s CGP Fund on Aug. July and 16% in IHH Healthcare Bhd to Mitsui & Co Ltd in October 2019 for 273 million RM and 8 billion RM respectively.

Khazanah also sold part of its stake in Chinese e-commerce giant Alibaba Group Holding Ltd, valued at RM 2.2 billion.

Khazanah’s overseas sales included the sale of shares in BDO Unibank Inc (valued at RM 1.56 billion), Ltd (RM 771 million), SEA Ltd (RM 612 million), Infosys Ltd (RM 201 million) , PT Charoen Pokphand Indonesia Tbk (196 RM). Million) and a partial sale of shares in Titan Industries Ltd (89 million RM).