By ASILA JALIL
SAMAIDEN Group Bhd and Solarvest Holdings Bhd inked a memorandum of understanding (MoU) separately with Hong Leong Bank Bhd (HLB) for the financing of solar businesses across Malaysia through HLB’s solar photovoltaic programme.
Both Samaiden and Solarvest will act as the designer and installer for the solar systems in accordance with the relevant laws and internal policy, while HLB will be the financier and owner of the programme.
All parties stated that the MoU will be in full force and effective for two years from the date of the signing.
“Upon the expiry of the initial term, the MoU may be renewed every two years with at least 30 days’ notice from HLB based on the same terms and conditions and subject to any additional or different terms as may be mutually agreed between the parties,” Solarvest stated in a filing yesterday.
In a separate Bursa filing, Samaiden said the MoU, which was signed via its unit Samaiden Sdn Bhd (SSB), does not constitute an agreement or commitment by either party to enter into an arrangement about or provide support for any activity or project.
SSB is responsible to declare the cost matrix and list of key equipment and components used in the programme for each financial year to HLB as in fulfilment of the bank’s requirement for an annual review of the company under the MoU.
On the financial impacts, Samaiden said the MoU is expected to contribute positively towards the future earnings and net assets per share of the group, and for the duration of the MoU.
“The MOU will not have any effect on the share capital and substantial shareholders’ shareholdings of the company,” it said.
Samaiden’s share price remained unchanged to close at RM1.79 yesterday with a market capitalisation of RM375.9 million, while Solarvest closed 31 sen or 11.36% lower at RM2.42, valuing the company at RM1.02 billion.