VSolar in JV deal to build 10MW biogas energy plant

VSolar Group Bhd announced today that it will be jointly developing a 10MW biomass/biogas energy generation plant with a Singapore firm and a local citizen

VSolar Group Bhd announced today that it will be jointly developing a 10MW biomass/biogas energy generation plant with a Singapore firm and a local citizen.

The Singapore firm is KRU Energy Asia Pte Ltd, which will provide expertise in supplying all major equipment and engineering to the project, according to VSolar in a Bursa Malaysia filing.

The Malaysian is one Kenneth Lee Wai Tong. No further details about him were provided.

VSolar inked an investment and shareholders' agreement Lee and KRU and KRU's subsidiary Rangkaian Iltizam Sdn Bhd today for the proposed joint venture.

Under the collaboration, the three parties will undertake the JV under VSolar's currently dormant RM2-dollar subsidiary with 2 shares, VSolar Engineering Sdn Bhd (JVCo).

The JVCo will issue new shares to have a paid up capital of RM10,000 comprising 10,000 shares, whereupon and RI will take up a 35% stake in the unit for RM3,500, while Lee will take up 5% for RM500. VSolar will take up the remainder 5,998 shares for RM5,998.

VSolar said the JVCo will build own and operate the said plant.

"Upon the issuance of a SEDA (Sustainable Energy Development Authority Malaysia) Certificate, ST (Suruhanjaya Tenaga) Certificate or other approval from a relevant authority permitting the Company to sell electricity (whether to Tenaga Nasional Berhad or otherwise), VSolar shall, on a best effort basis, provide and/or procure the provision to the Company of all financing required for the construction of the project," said VSolar.

All financing provided or procured by VSolar will be in the form of debt owed by the JVCo, it added.

No further details were provided about the project.

VSolar shares closed unchanged at 10 sen today, valuing it at RM37.35 million.

Source: The Edge Markets

Posted on : 09 August 2017
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Last Updated : Tuesday 12th November 2019