Serba Dinamik Holdings Bhd, a wholly-owned subsidiary of Serba Dinamik Group Bhd (SDGB), has entered a memorandum of agreement (MoA) with Maju Holdings Sdn Bhd for the acquisition of 40 per cent equity stake in Maju Renewable Energy Sdn Bhd, Maju RE (Talang) Sdn Bhd and Maju RE (Temenggor) Sdn Bhd from Maju Holdings Sdn Bhd for RM24.85 million.
Maju currently owns 70% of the paid-up share capital in each of the target companies, and the remaining 30% shareholding is held by Perak Hydro Renewable Energy Corporation Sdn Bhd.
Serba Dinamik Holdings group managing director and chief executive officer Datuk Dr Ir Mohd Abdul Karim Abdullah said in a statement, the proposed sale is in line with this company’s business expansion through investment and acquisition of small hydropower generation companies as set out in the company’s prospectus.
“The Purchase Consideration (RM 24.85 million) will be satisfied entirely in cash financed through the proceeds from the initial public offering of Serba Dinamik Holdings.
“Aside from reaping the benefits in the form of dividend from the Proposed Sale, we will also undertake the operation and maintenance contract for the Power Plants, which is estimated to be approximately RM10.56 million per year, based on the average cost of two per cent per year on the capital expenditure of approximately RM560 million.
“We also predicts that this MoA would create an opportunity for it to be awarded with the EPCC contract for the power plants on a turnkey basis, which was valued at about RM560 million,” he said.
He said, the target companies, through their wholly owned subsidiaries, have been granted approval by the Sustainable Energy Development Authority Malaysia to develop hydro power plants with a total of 60MW generating capacity within the Temenggor and Belum Forest Reserves in Perak.
They have also entered into renewable energy power purchase agreements with Tenaga Nasional Bhd in respect of the supply of renewable energy generated by the power plants to the national power grid.