KUALA LUMPUR: Shares in Citaglobal Bhd
jumped 10% on Tuesday on news it had entered into a joint development framework agreement (JDFA) with SUS Holding Limited, a wholly-owned subsidiary of ultimate holding company Shanghai SUS Environment Co Lt (SUS Environment).
As at 9.15am, the trading stock of the group had eased from a high of RM1.11 a share and was up eight sen to RM1.09 a share after 858,000 shares traded.
SUS Environment is China's largest solid waste incinerator supplier and a leading developer of integrated environmental solutions.
In a Bursa Malaysia filing, Citaglobal said the agreement aims to collaborate on converting municipal waste in Pahang into green energy and developing agricultural waste, like empty fruit bunches and palm oil sludge, into biomass energy in Malaysia.
It added that the JDFA is legally binding, and shall be used as the basis for the shareholder’s agreement for the incorporation of the joint special purpose vehicle (SPV) 51 (SUS Environment): 49 (Citaglobal) to be executed within six months from today’s agreement.
Under the JDFA, SUS Environment will contribute the required preliminary seed investment and financing to initiate identified projects. The company will also oversee engineering, procurement, construction, and commissioning (EPCC) for these projects and manage commercial operations upon completion.
The proposed SPV's initial paid-up share capital is RM1mil of which RM510,000 by SUS Environment and RM490,000 by Citaglobal which is subject to the business and development plan to be agreed by both parties.
"Modern waste management is about 'turning trash into treasure,' recognising that waste can be a valuable resource when managed effectively. Contemporary waste management extends beyond mere disposal. It now entails the efficient management of waste to minimise its environmental impact while maximising resource utilisation,” Citaglobal executive chairman and president Tan Sri Dr Mohamad Norza Zakaria said in a statement.
“Our collaboration with SUS Environment will focus on reducing waste generation, promoting waste repurposing, and ensuring compliance with environmental regulations. This collaboration with SUS Environment is a significant step towards achieving our shared vision of promoting sustainable waste management practices in Malaysia."
