Transaction News: Khazanah forms strategic partnership with SK ecoplant in Waste Management

24 May 2022

Malaysia’s sovereign wealth fund, Khazanah Nasional Berhad (‘Khazanah’) entered into a strategic partnership with South Korea’s SK ecoplant Co Ltd (‘SK ecopant’) on 20 May 2022 to further Khazanah’s aspirations of elevating its waste management business into a world class business and leading regional player in the business.
 
The strategic partnership is to be carried out through the acquisition by SK ecoplant of 30% of the issued shares in Cenviro Sdn Bhd (‘Cenviro’), a wholly-owned subsidiary of Khazanah. The transaction is subject to regulatory approvals.
 
SK ecoplant is a unit of SK Group, the second largest conglomerate in South Korea. SK ecoplant has over 44 years of experience in eco-friendly businesses in integrated waste management, energy, engineering, and construction and has a business presence in 15 countries.
 
Cenviro, founded in 1991, is Malaysia’s first integrated management company as well as the leading circular waste management solutions provider in the country.
 
According to a media statement by Khazanah, SK ecoplant’s global experience in waste management and continuous drive to strengthen its environmental, social and governance credentials are key factors that would help guide Cenviro in achieving its aspirations in becoming a regional leader in the waste management industry.
 
SK ecoplant was represented by Skrine in this transaction. The lead transaction lawyers are To’ Puan Janet Looi (Partner), Sheba Gumis (Partner) and Grace Teo (Senior Associate). They were assisted by Associates Nur Liana binti Mohamed and Tham Zhi Jun on the transaction documents and legal due diligence. Partners Richard Khoo, Shannon Rajan, Natalie Lim, Shaleni Sangaran, Jesy Ooi and Sara Lau, Senior Associates Rachel Chiah and Francine Ariel Paul, and Associates  Joey Tiw, Raaasi Laarnia a/p Rajandran, Jemima Tang, Nicole Oh, Beatrice Yew and Marcus Leong, assisted in various aspects of the legal due diligence.
 
Media statement and coverage:
 
Khazanah media statement dated 20 May 2022.
 
Khazanah in S. Korean partnership with SK ecoplant, The Star Online, 21 May 2022.
 
South Korea firm to take up 30% stake in Khazanah’s waste management investee company, theedgemarkets.com, 20 May 2022.
 
This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.