SK Group is reportedly exploring the sale of its minority interest in Malaysian waste management company Cenviro Sdn Bhd, in a transaction that could value the firm at approximately US$300 million (RM1.27 billion), according to sources familiar with the matter.
The South Korean conglomerate is understood to be working with a financial adviser to assess the potential divestment of its 30% stake in Cenviro. Discussions have taken place with potential buyers, including strategic players in the sector and private equity firms, sources said, requesting anonymity due to the private nature of the talks.
SK Group, via its environmental unit SK ecoplant Co, acquired the stake in Cenviro in 2022 for an undisclosed amount. Cenviro’s majority shareholder is Khazanah Nasional Bhd, Malaysia’s sovereign wealth fund.
While deliberations are ongoing, one of the sources indicated that SK may ultimately choose to retain its holding. Both SK ecoplant and Cenviro declined to comment on the matter when contacted.
A potential exit from Cenviro would be consistent with SK Group’s broader strategic realignment away from waste management. South Korean media have reported that SK is also seeking to offload its waste-to-energy subsidiaries, Renewus and RenewOne.
The group is currently undergoing a major restructuring effort following an extended period of acquisitions that has led to increased financial obligations. As part of this shift, SK is refocusing its core strategy around high-growth sectors, including artificial intelligence and semiconductor technologies.
-Bloomberg
