SUNVIEW Group Berhad (SUNVIEW) has proposed to acquire a 50MWac LSS4 solar plant from PKNP Reneuco Suria Sdn Bhd (PKNPRS) for RM70 mil cash under a tender exercise.
PKNPRS’ holding company Reneuco Bhd became an affected listed issuer under Practice Note 17 of the Main Market Listing Requirements in February 2024, which eventually resulted in works on the solar plant being halted and the plant being placed under receivership.
Located in Pekan, Pahang, the solar plant is currently 79% completed with estimated additional funding of between RM50 mil-120 mil required to complete the remaining construction works.
SUNVIEW was the appointed EPCC contractor for the plant and taking over ownership would allow it to revive and continue the project to completion, with a targeted commercial operation date (COD) by quarter four of calendar year 2026 (4QCY26).
The proposed acquisition is subject to SUNVIEW shareholders’ approval and is expected to be completed by 2QCY26.
The acquisition is consistent with SUNVIEW’s strategy of expanding its RE generation asset to grow its recurring income base.
“Depending on the final total capex for the plant, we estimate PIRR could range between 6%-8%, which is a decent rate of return for an LSS plant,” said TA Securities.
Furthermore, being the original EPCC contractor, SUNVIEW attains hands on knowledge of the specific design and technical construct of the plant, reducing execution risk for the remaining portion of construction.
On preliminary estimates, the LSS4 plant could enhance group annual earnings by +22%. However, the acquisition would stretch SUNVIEW’s balance sheet, which will likely have to draw down additional borrowings to fund the purchase, as at end-FY25.
SUNVIEW’s gross cash stood at RM55 mil(net gearing: 70%), relative to the RM70 mil purchase consideration and additional funds required to complete construction of the plant. —Dec 31, 2025
Main image: Sunview
