G Capital inks stake sale deal for Solarcity
09 Feb 2021
KUALA LUMPUR: G Capital Bhd (GCap) today entered into a joint venture cum shareholders agreement (JVSHA) with Eleaps Sdn Bhd and Muhammad Albashir Abdullah Kok for a subscription of 70 per cent stake in Solarcity Malaysia Sdn Bhd for RM3.5 million.
Executive director Tan Sri Dr Ali Hamsa said the JVSHA deal provides a new strategic growth area for the group moving forward and the company was optimistic of the solar energy sector’s continued trajectory in this country.
“It is also in line with GCap’s business direction in further strengthening its position in the renewable energy market. GCap has already established its footing in the renewable energy by venturing into small hydro projects under its 51 per cent subsidiary Perak Hydro Renewable Energy Corporation Sdn Bhd,” he said in a statement today.
Ali Hamsa said GCap is hopeful to create more value for its shareholders based the GoM’s support in providing an economically viable platform for investments in the renewable energy sector, as well as the long-term prospects of a commercial bank in Cambodia.
The company said the subscription will be financed through internally generated funds.
Solarcity is in the business of supply, installation and operation of solar photovoltaic electric power generation system (Solar PV System).
Solarcity currently has several contracts to design, construct, install, own, operate and maintain, under “build-operate-transfer” (BOT) concept.
G Capital said the total installed capacity of these contracts is 7.2MWp.
Solarcity guarantees to the customers that the Solar PV Systems shall generate a combined minimum output of 228.2GWh of electricity over the contract period.
Solarcity shall complete and deliver the Solar PV Systems to the customers by the third quarter of 2021.
Further, Solarcity shall be responsible for operating and maintaining the Solar PV Systems throughout the contract period of 25 years, and upon the expiry of the contract period, the Solar PV Systems shall be handed over to the customers at a nominal consideration of RM1 each.