By DASHVEENJIT KAUR
Serba Dinamik Holdings Bhd has proposed to acquire 40% equity stakes in three renewable energy (RE) firms owned by Maju Holdings Sdn Bhd for a total cash consideration of RM24.85 million.
The listed engineering services provider’s wholly owned subsidiary, Serba Dinamik Group Bhd (SDGB), has signed a memorandum of agreement (MoU) with Maju Holdings for the proposed stake acquisitions involving Maju RE Sdn Bhd, Maju RE (Talang) Sdn Bhd and Maju RE (Temenggor) Sdn Bhd.
Group MD and chief executive director Datuk Mohd Abdul Karim Abdullah said the purchase consideration will be satisfied entirely in cash using the proceeds from its initial public offering.
Serba Dinamik said Maju Holdings currently owns 70% of the paid-up share capital in each of the companies, while the remaining 30% interest is held by Perak Hydro RE Corp Sdn Bhd.
The three companies have been given approval by the Sustainable Energy Development Authority Malaysia to develop hydropower plants with a total capacity of 60MW.
The three companies have also signed RE power purchase agreements with Tenaga Nasional Bhd.
The power plants will be developed wi thin the Temenggor and Belum Forest Reserves in Perak, of which a 27MW hydropower plant will be located in Singgor, a 19MW hydropower plant in Talang, and a 14MW hydropower plant in Temenggor.
“The proposed sale is in line with the company’s business expansion through investment and acquisition of small hydropower generation companies as set out in our prospectus,” Mohd Abdul Karim said.
Besides the dividends, Mohd Abdul Karim said Serba Dinamik will also undertake the operation and maintenance contract for the hydropower plants.
The maintenance contract is estimated to be approximately RM10.56 million annually, based on the average cost of 2% per year on the capital expenditure of RM560 million.
He also said the proposed acquisition will create an opportunity for the company to be awarded the engineering, procurement, construction and commissioning (EPCC) contract for the power plants on a turnkey basis, which is valued at RM560 million.
“By leveraging on our core strengths in maintenance, repair and overhaul, inspection repair and maintenance, and EPCC, we had in February 2016 secured a contract to operate as well as maintain three small hydropower plants for 21 years in Kota Marudu, Sabah.
“We will utilise our expertise and similar experience in operating the hydropower plants on managing our upcoming developments,” Mohd Abdul Karim added.
Serba Dinamik closed one sen lower yesterday at RM3.52 with a market capitalisation of RM4.7 billion.