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KUALA LUMPUR: Kejuruteraan Asastera Bhd is expanding its sustainable energy solutions (SES) segment with the acquisition of Matahari Suria Sdn Bhd (MSSB).
The engineering and energy solutions provider said its wholly-owned subsidiary KAB Energy Holdings Sdn Bhd signed a share sale agreement with Unique Forging & Components Sdn Bhd to acquire the entire equity of MSSB for a total purchase consideration of RM5.3mil.
MSSB’s principal activity is the generation and sale of solar energy. It owns a rooftop solar photovoltaic (PV) system on the rooftop of Universiti Teknologi Malaysia Kuala Lumpur and has an ongoing power purchase contract to supply energy to Tenaga Nasional Bhd under a feed-in tariff concession of RM0.98 per kWh up to 2037.
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“Expanding our solar PV portfolio is a key growth strategy of our sustainable energy solutions segment. The latest acquisition brings our solar PV portfolio coverage to three states in Malaysia, spanning Kuala Lumpur, Selangor, and Kelantan, which provide significant recurring income that enhances our long-term earnings,” managing director Datuk Lai Keng Onn said in a statement.
“We will continue to identify more opportunities in solar PV and other renewables sources, alongside Malaysia’s push for more renewable energy mix in the national installed energy capacity,” he added.
The acquisition is anticipated to contribute positively to KAB’s financial performance from the fourth quarter of 2022 and onwards.
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