KUALA LUMPUR: Khazanah Nasional Bhd has selected South Korea's SK ecoplant Co Ltd as its strategic partner to accelerate Cenviro Sdn Bhd's growth into a waste management powerhouse.
The sovereign wealth fund said in a statement SK ecoplant won a multilateral bid process to be the optimal minority shareholding partner to support its flagship sustainable services firm, Cenviro, in its next stage of strategic growth.
SK ecoplant, which is involved in eco-friendly businesses in the fields of integrated waste management, energy, engineering, and construction, will lend its operational and technological capabilities to Cenviro.
Upon completion of the partnership, the South Korean firm will hold a 30% stake in Cenviro while Khazanah will remain a majority shareholder in the company.
According to Khazanah, the collaboration is in line with the industrial development of the national waste management sector and its long-term strategy under the ambit of Advancing Malaysia, which was announced by the fund at its annual review in March 2022.
"Among others, Khazanah 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 said.
It added that the partnership will also facilitate its strategy of creating a sustainable future, in which it hopes to play a leading role in shaping an equitable and responsible environmental, social and governance (ESG)
transition for Corporate Malaysia.
“For over 30 years, Cenviro has been the local leader in Malaysia’s integrated waste management sector.
"Our partnership with SK ecoplant, will further elevate Cenviro’s business to be world class and 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," said Khazanah managing director Datuk Amirul Feisal Wan Zahir.