AWC Berhad has announced that it had entered into a conditional share sale and purchase agreement for the proposed acquisitions of the remaining 49.00% equity interest in Stream Group Sdn. Bhd. and a 51.00% equity interest in Premium Patents Sdn. Bhd. for a total cash consideration of RM110 million
Currently, Stream Group is a 51.00 %–owned subsidiary of AWC, and Premium Patents is a 49.00 %-owned associate company of Stream Group, which in turn is a 24.99 %-owned associate company of AWC.
Upon the completion of the Proposed Acquisitions, Stream Group will become a wholly-owned subsidiary of AWC, while Premium Patents will become a 51.00%-owned subsidiary of AWC and a 49.00%-owned associate company of Stream Group, which in turn will be an indirect wholly-owned subsidiary of AWC.
Stream Group is an engineering company specialising in the design and installation of automated waste collection systems. It also undertakes operations and maintenance services for all AWCS for its clients and has a presence in Malaysia, Singapore, China, UAE, Qatar, Australia, and India. As of 30 June 2023, Stream Group has an outstanding order book of approximately RM132.4 million and a tender book of approximately RM107.1 million.
Premium Patents is principally involved in registering industrial methods, systems or processes patents and trademarks worldwide and licensing activities. The proprietary “WasteStream Shuttle” system will be a unique selling point going forward and is currently patented under Premium Patents. The application of the “Waste Shuttle” system can reduce the energy cost of AWCS by approximately 70.0%.
AWC said the acquisition will allow the group to streamline and fully consolidate the financial performance of the companies and allow it to obtain full control and realise all initiatives put in place to drive the future strategic direction, competitiveness, and growth of Stream Group.
Group CEO Dato Ahmad Kabeer said ”Apart from growing geographically, Stream Group has also performed very well financially. Having achieved a revenue of approximately RM55 million in FY2020, this has almost doubled to RM100 million in FY2023. Profitability has also increased in tandem as Stream Group’s current outstanding orderbook stands at above RM130 million.”
