PRG’s Hong Kong-listed Furniweb to acquire 37.25% of MNV

 

PRESS RELEASE

IMMEDIATE RELEASE

 

 PRG’s Hong Kong-listed Furniweb to acquire 37.25% of Singaporeenergy services company for RM5.11 million

SELANGOR, 1 NOVEMBER 2021 – PRG Holdings Berhad (“PRG” or the “Company“), a company listed on Bursa Malaysia Main Market  primarily involved in manufacturing, property development, construction and healthcare businesses, announced today that its 54.19%-owned subsidiary Furniweb Holdings Ltd (“Furniweb”), which was listed on the GEM of the Stock Exchange of Hong Kong Limited, has entered into a Sale and Purchase Agreement to acquire 37.25% issued and paid-up capital of Energy Solution Global Limited (“ESGL”), whose two wholly-owned operating subsidiaries are principal engaging in provision of smart energy solution at the consideration of HK$9,564,496 (approximately RM5.11 million).

One of the subsidiaries, Measurement & Verification Pte Ltd was incorporated in Singapore in 2009 and is an Energy Services Company (ESCO) accredited by the National Environment Agency (NEA) of Singapore. Over the years, the management also ventured into Malaysia’s market through its wholly-owned subsidiary, Measurement & Verification Sdn Bhd (both companies collectively known as “M&V”). M&V has earned international acclaim for its extensive achievements in the field of energy management, monitoring, control and audit. Besides promoting sustainable economic growth by designing and installing energy-efficient HVAC (heating, ventilation and air conditioning) systems, M&V also provides smart building controls technologies with long term performance-based contracts  that help facility owners to increase the reliability and energy efficiency of mechanical and electrical systems, while improving manpower productivity.

To date, M&V has amassed an orderbook of approximately SG$40 million. This strong orderbook comprises job wins from datacentre projects such as AirTrunk, ST Telemedia and contracts from big corporations in Singapore such as Changi Airport and SSMC

According to a statement by PRG Group, 30% of the purchase consideration shall be satisfied via cash amounting to HK$2,869,349.00 (equivalent to approximately RM1.53 million) and the balance 70% shall be satisfied by the allotment and issuance of 19,128,992 shares of Furniweb at the aggregate issue price of HK$6,695,147.00.

Through this acquisition by Furniweb, PRG Group is making its first foray into the energy efficiency industry, in line with the global push for sustainability through Environmental, Social and Governance (ESG) efforts.  M&V will be able to leverage on both PRG and Furniweb’s listing status as a platform for regional expansion opportunities both organic and inorganically. Collectively, both parties would be able to collaborate in scaling business opportunities in energy efficiency and resource efficiency projects. PRG is of the opinion that this acquisition will contribute positively to the future earnings of PRG Group.

Speaking on the newly-formed union, PRG’s Executive Vice Chairman and Furniweb’s Executive Director, Dato’ Lua Choon Hann said: “Much like Furniweb, we see many positive similarities in M&V such as the company operating for over a decade now and serving several countries around the world. We also understand that today’s world demands efficiency with resources and energy processes, and in the business paradigm there is an even stronger case for translating efficiency into meeting profitability and ever-increasing compliance targets. Therefore, we believe there is a lot more room and opportunity for M&V to grow regionally.”

Meanwhile, M&V Founding Director Mr Lee Eng Lock said: “In a world where both countries and corporations have pledged Net-Zero Carbon Goals between 2030 and 2060, a share swap represents the alignment of goals in both the financial and sustainable development markets. This is especially important where publicly-listed companies have to comply with reporting standards established by various stock exchanges, globally.”

PRG started operations in 1983 in Malaysia under the name “Furniweb Industrial Products Bhd” as a manufacturer of niche products for the furniture, textile and apparel industry. The Company was listed on Bursa Malaysia since 2003. In order to strengthen the Company’s brand image and to reflect a more aligned business direction of PRG Group, the Company’s name was changed to PRG Holdings Berhad in January 2015. PRG has since diversified its business into property development, construction, healthcare and agriculture businesses. 

Date: 1 November 2021old in the United States except pursuant to an applicable exemption  

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