Citaglobal and Genetec form JV to manufacture battery energy storage systems

Citaglobal and Genetec form JV to manufacture battery energy storage systems

06 Apr 2023

Citaglobal Bhd and Genetec Technology Bhd have formed a joint venture (JV) company to manufacture battery energy storage systems (BESS) and explore opportunities for the business in Malaysia and the Asean region.

In a filing with the exchange, Citaglobal said the 50:50 JV company, Citaglobal Genetec BESS Sdn Bhd (CG BESS), will develop, design and build integrated manufacturing facilities for BESS.

It will also develop integrated solutions, facilitate sharing of related technologies and know-how for the development of the system, and own the related intellectual property and trademark.

Citaglobal will be responsible to scout for Asean and Malaysian business opportunities and demand for the system, and to obtain necessary approvals and support to undertake any venture.

Genetec, on the other hand, will provide the technical expertise on BESS and undertake knowledge transfer to the JV company, the filing said.

“The JV allows both parties to draw on and combine the respective unique resources, expertise, knowledge and experience of Citaglobal’s and Genetec’s group of companies in respect of the BESS projects which would create a platform to tap into the energy storage segment which is seen as defensive with good potential for growth,” the company stated.

Both parties intend to increase the share capital of CG BESS to RM500,000 comprising 500,000 shares by the second quarter of 2023 whereby Citaglobal and Genetec will each subscribe to 249,500 new shares for RM499,000.

Citaglobal shares closed 2.86% or four sen higher at RM1.44 per share with a market value of RM546.58 million while Genetec’s shares gained 2.18% or six sen to RM2.82 apiece, giving it a market capitalization of RM2.11 billion.

Source: The Edge Markets