In this article, you will get all information regarding PRG Acquires Singapore-Based Energy Solution Global Ltd For Earnings Prospects – BusinessToday
In anticipation of growing demand and an expanding market in the energy efficiency business both in Malaysia and Singapore, the Main Market-listed PRG sets to capitalize on the acquisition of Singapore-based Energy Solution Global Ltd (ESGL) to enhance group earnings.
PRG made an announcement on 29 August 2022 that the acquisition of the remaining 6,275 shares or 62.75% of the equity interest in ESGL for HK$58.19 million (equivalent to RM31.42 million) was completed via its 50.45%-owned subsidiary Furniweb. This acquisition was satisfied via cash and issuance of new ordinary shares in Furniweb. Furniweb will now be able to fully consolidate ESGL’s earnings.
The acquisition move is part of PRG’s long-term strategy to venture into the heating, ventilation and air conditioning, energy management system (HVAC-EMS) industry. Judging from ESGL’s strong track record and healthy order book on hand, PRG hopes to enhance its earnings going forward.
To recap, Furniweb acquired 37.25% equity interest in ESGL for a total consideration of up to HK$9.56 million, via cash on 13 December 2021. Furniweb is a 50.45%-owned subsidiary of PRG. It is currently listed on the GEM of The Stock Exchange of Hong Kong Limited. Its principal activities are mainly in investment holding while its subsidiaries are principally engaged in the manufacturing and sale of elastic textile, webbing, rubber and polyvinyl chloride-related products.
Meanwhile, ESGL’s two wholly-owned subsidiaries, namely M&V SG and M&V MY provide smart energy saving solutions by designing and installing HVAC-EMS systems for buildings which aim to achieve optimal energy consumption, lower greenhouse gas emissions and reduction in energy costs. The company also installs high-precision temperature sensors, air flow meters, humidity sensors, refrigerant leak detectors and data loggers that provide real-time monitoring of HVAC’s efficiency. The main purpose is to use less energy without compromising on the comfort level thus reducing overall energy costs.
“The acquisition of ESGL marks an important milestone for PRG’s ESG initiatives. Boosting energy efficiency in buildings is an inexpensive and low-impact way to reduce carbon emissions and climate pollutions. I believe ESG concerns are becoming more urgent than ever and our ESG proposition will definitely create value for PRG Group going forward,” Dato’ Lua Choon Hann, Group Executive Vice Chairman of PRG said.
“In the near term, we see a growing demand and an expanding market in the energy efficiency business in both the Malaysia and Singapore market,” he added.
“According to China Insights Consultancy, the market size of the HVAC-EMS industry in Malaysia is expected to pick up from USD205.9m in 2021 to US$434.8 million by 2026, representing a CAGR of 16.1% between 2021 and 2026. In Singapore, the market size is expected to double from USD113.4m in 2021 to US$235.5 million by 2026, representing a CAGR of 15.7% between 2021 and 2026,” he concluded.
PRG Acquires Singapore-Based Energy Solution Global Ltd For Earnings Prospects – BusinessToday
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