The acquisition represents an opportunity for the group to provide immediate earning accretion to the group upon completion of the project

RESERVOIR Link Energy Bhd’s (RLEB) wholly owned subsidiary Skyline Energy Sdn Bhd has entered into a term sheet to acquire 90% equity interest in Indonesia’s PT Eco Power Engineering (EPE) for US$3 million (RM12.81 million) in cash.

EPE is expected to enter into a power purchase agreement with Perseroan Listrik Negara for a 9.6-megawatt (MW) mini hydro power plant, RLEB told the stock exchange yesterday.

RLEB said the acquisition represents an opportunity for the group to provide immediate earning accretion to the group upon completion of the project.

“The proposed acquisition is envisaged to provide an opportunity to the company to build a 9.6 MW mini hydro power plant in line with the company’s asset ownership business model for long-term dividend sustainability,” it said.

It added that the proposed acquisition will enable the company to expand its income streams and further strengthen its position in the sustainable energy and utilities sector.

As such, it opines that the deal is expected to provide the company with a profitable recurring income stream, which is expected to improve the company’s profit and provide better earnings visibility over the long term. – TMR / pic TMR File