KEJURUTERAAN Asastera Bhd, an electrical and mechanical engineering services provider, is gradually widening its revenue stream to the renewable energy sphere.
Through its wholly-owned subsidiary, KAB Smart Solar Energy Sdn Bhd (KSSE), the company has entered into a binding term sheet with Mayang Hijau Sdn Bhd, Evergreen Thumbsup Sdn Bhd and Heng Boon Liang.
According to the term sheet, KSSE will subscribe 800,000 ordinary shares or 80% stake in Mayang Hijau for RM800,000 cash.
Evergreen Thumbsup will in turn subscribe for 199,999 shares for RM199,999 while Heng shall transfer his one ordinary share of RM1 equivalent in Mayang Hijau in favour of Evergreen Thumbsup.
Upon completion of the proposed subscription, Mayang Hijau will become an 80% owned indirect subsidiary of Kejuruteraan Asastera with the remaining 20% to be held by Evergreen Thumbsup.
Meanwhile, Mayang Hijau has recently inked a solar supply agreement to finance, design, construct, own and operate a 1.58-megawatt (MW) peak solar photovoltaic (PV) energy generating system under the build-operate-transfer (BOT) concept with the expected commercial operation date by 3Q 2021.
Additionally, Mayang Hijau is in the final stage of negotiations to secure a cumulative capacity of 10-MW peak of contracts.
Under these contracts, the company is predominantly responsible to operate and maintain the solar PV system for a concession period of 25 years, after which the ownership of the solar panels installed will be handed over to the customers upon the expiry of the concession period.
“The proposed subscription into Mayang Hijau is part of our plans to further strengthen Kejuruteraan Asastera’s position in the energy market,” the company’s managing director Datuk Lai Keng Onn pointed out.
“We are confident that this proposed subscription will enhance our recurring income stream from the company’s existing core businesses and subsequently create more value for all our stakeholders.”
Lai added: “With the environmental, social and governance (ESG) concern becoming the norm, we will continue to contribute to the society at large, and at the same time, grow our businesses to even greater heights.”
At 2.31pm, Kejuruteraan Asastera was up 10 sen or 6.29% to RM1.69 with 6.08 million shares traded, thus valuing the company at RM1.59 bil. – Feb 16, 2021