G Capital Bhd (GCap) is venturing into the business of supply, installation and operation of solar photovoltaic electric power generation system (solar PV system) by taking up a 70% stake in Solarcity Malaysia Sdn Bhd.
Yesterday, the company inked a joint venture-cum-shareholders agreement (JVSHA) with Eleaps Sdn Bhd and Muhammad Albashir Abdullah Kok for a stake in Solarcity for RM3.5 mil cash which will be financed through internally generated funds.
Solarcity currently has several contracts to design, construct, install, own, operate and maintain, under the “build-operate-transfer” (BOT) concept.
The total installed capacity of these contracts is 7.2MWp (megawatt peak). Solarcity guarantees its customers that its solar PV systems shall generate a combined minimum output of 228.2GWh (gigawatt-hours) of electricity over the contract period.
The company shall complete and deliver the Solar PV Systems to the customers by 3Q 2021.
Additionally, it shall be responsible for operating and maintaining the solar PV systems throughout the contract period of 25 years. Upon the expiry of the contract period, the systems shall be handed over to the customers at a nominal consideration of RM1 each.
“This JVSHA provides a new strategic growth area for the group moving forward and we are optimistic of the solar energy sector’s continued trajectory in this country,” GCap executive director Tan Sri Dr Ali Hamsa pointed out.
“It is also in line with GCap’s business direction to further strengthen its position in the renewable energy market.”
GCap has already established its footing in the renewable energy market by venturing into small hydro projects under its 51% subsidiary Perak Hydro Renewable Energy Corp Sdn Bhd.”
At 12 noon, GCap was down 1 sen or 1.06% at 93 sen with 710,200 shares traded, thus valuing the company at RM286 mil. – Feb 10, 2021
