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23 DECEMBER 2022 AL CIRCLE

Malaysia's Citaglobal Bhd exits bauxite mining venture

EDITED BY : RUPANKAR MAJUMDER 2MINS READ

The Malaysian construction engineering company, Citaglobal Bhd, formerly known as WZ Satu Bhd, is exiting its bauxite mining venture under SE Satu Sdn Bhd to focus on a portfolio of businesses that includes civil engineering and construction, oil and gas, power generation, property development, manufacturing, and renewable energy.

Malaysia's Citaglobal Bhd exits bauxite mining venture

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During its bourse filing, the company said it would divest its 49% stake in SE Satu to Spring Energy Sdn Bhd for RM4.8 million.

Citaglobal, on the other hand, plans to keep the 31.31ha of freehold agricultural land under SE Satu in Sungai Karang, Pahang, in order to develop a renewable energy generation project along the East Coast Rail Link (ECRL). As a result, Citaglobal's indirect wholly-owned Sinergi Dayang Sdn Bhd will pay SE Satu RM10.08 million for the land.

The total cost of the two transactions will be RM5.28 million, which Citaglobal would ultimately pay to Spring Energy.

On December 22, 2022, Tan Sri Mohamad Norza Zaharia, the Executive Chairman, President and Principal shareholder of the group, said, "Disposing of the bauxite mining business is in line with Citaglobal's vision of exiting the legacy business as it intends to participate in technology-driven sectors."

Future of Aluminium in Transportation Sector

"Citaglobal is in the final laps of its legacy business clean-up process. We are extremely pleased to acquire this land in Sungai Karang. Not only is its location close to the ECRL project, but it also has the suitable composition and requirements to house renewable energy."


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EDITED BY : RUPANKAR MAJUMDER 2MINS READ

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