AWC to acquire 49 pct stake in Stream Group for RM110m

KUALA LUMPUR: AWC Bhd (AWC) has proposed to acquire the remaining 49 per cent stake in Stream Group Sdn Bhd from Premium NXL Sdn Bhd (PNSB) for RM110 million.

In a filing with Bursa Malaysia, AWC said it also proposed to acquire 51 per cent equity interest in Premium Patents Sdn Bhd from PNSB and Premium Deluxe Sdn Bhd (PDSB) for RM1.

Premium Patents is presently a 49-owned associate company of Stream Group, which in turn is a 51 per cent-owned subsidiary of AWC. It said the purchase consideration was arrived at on a ‘willing-buyer willing-seller’ basis.

Upon completion of the proposed acquisitions, it said Stream Group would become a wholly-owned subsidiary of AWC, allowing AWC to streamline and fully consolidate the financial performance of Stream Group.

The proposed acquisitions would allow AWC to obtain full control of Stream Group to drive the future strategic direction and growth and enable AWC to fully realise all the efforts and initiatives, it said, creating more value and improving the competitiveness of the company.

AWC said the proposed acquisitions were also in line with the overall strategy of the company to enhance its profitability by improving its returns within the waste management business, which is considered a key focus within the company’s environmental, social and governance (ESG) initiatives related businesses, and facilitate the continuing growth of the company’s core business as a diversified ESG player. Barring any unforeseen circumstances, the proposed acquisitions are expected to be completed in the first quarter of 2024.

Stream Group’s principal activities are general trading and installation of cleaning equipment, vacuum systems, pipe networks and specialised connections (environment protection equipment), all of which are in relation to the waste collection system. — Bernama