KUALA LUMPUR: PRG Holdings Bhd's (PRG) 54.19 per cent-owned subsidiary Furniweb Holdings Ltd (FHL) signed a sale and purchase agreement to acquire 37.25 per cent issued and paid-up capital of Energy Solution Global Lid (ESGL) for HK$9.56 million (approximately RM5.11 million).

According to a statement, PRG said 30 per cent of the acquisition be satisfied via cash amounting to HK$2.86 million (equivalent to approximately RM1.53 million), and the balance 70 per cent will be by the allotment and issuance of 19.12 shares of FHL at the aggregate issue price of HK$6.69 million.

Through this acquisition by FHL, PRG is making its first foray into the energy efficiency industry, in line with the global push for sustainability through environmental, social and governance (ESG) efforts.

Over the years, ESGL ventured into Malaysia's market through its wholly-owned subsidiary Measurement & Verification Sdn Bhd (MVSB).

ESGL also has a subsidiary in Singapore, namely Measurement & Verification Pte Ltd (MVPL), incorporated in 2009, which is an energy services company (ESCO) accredited by the National Environment Agency (NEA) of Singapore.

MVSB will be able to leverage both PRG and FHL's listing status as a platform for regional expansion opportunities both organic and inorganically.

PRG executive vice-chairman and FHL's executive director Datuk Lua Choon Hann said much like FHL, the company see many positive similarities in MVSB, such as the company operating for over a decade now and serving several countries around the world.

"We also understand that today's world demands efficiency with resources and energy processes, and in the business paradigm, there is an even stronger case for translating efficiency into meeting profitability and ever-increasing compliance targets.

"Therefore, we believe there is a lot more room and opportunity for MVSB to grow regionally," he said in a statement today.

Collectively, both parties would collaborate in scaling business opportunities in energy efficiency and resource efficiency projects.

PRG believes that this acquisition will contribute positively to the future earnings of the company.

PRG started operations in 1983 in Malaysia under the name Furniweb Industrial Products Bhd as a manufacturer of niche products for the furniture, textile and apparel industry.

The company was listed on Bursa Malaysia in 2003 and has diversified its business into property development, construction, healthcare and agriculture businesses.