PETALING JAYA: IOI Corp Bhd
’s stake in the RM600mil joint-venture (JV) paper pulp plant in Pahang is expected to be diluted to 33.75% from the initial 45% with the entry of Xiamen C&D Corp in the project.
This means the impact of the project on IOI, from funding to its eventual after-tax contribution in the medium term, will be even more negligible, according to Kenanga Research.
“Strategically, IOI is investing in an environmental, social and governance (ESG)-positive project which needs some industrial, financial and market access to scale up,” the brokerage said in its report yesterday.
Nextgreen IOI Pulp Sdn Bhd (NIP) – a JV between IOI (45%) and Nextgreen Global Bhd (55%) – last week signed a memorandum of understanding (MoU) with China-based Xiamen C&D for the proposed development and operation of a RM600mil green and sustainable paper pulp production facility in Pahang.
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