Minetech expands into renewable energy, O&G sectors
28 Jun 2021
Minetech Resources Bhd, Malaysia’s largest aggregate mining conglomerate, plans to broaden its horizon into renewable energy (RE) and the oil and gas (O&G) sectors.
In a virtual extraordinary general meeting today, company shareholders approved Minetech’s resolution on a proposed private placement, amendments to the constitution, reduction of share capital to fund the business expansion, as well as diversifications into the new sectors.
“Minetech is expected to raise proceeds amounting to approximately RM85.1 million through the proposed private placement and irredeemable convertible preference shares (ICPS).
“The approval of the proposed private placement and ICPS allow us to shift our gearing into the RE and O&G sectors, which we have identified as potential revenue generators that could potentially contribute 25% or more to our net profit,” said its executive chairman Pengiran Datuk Awang Daud Awang Putera in a filing with Bursa Malaysia.
In March this year, Minetech had been registered as a solar photovoltaic Investor with the Sustainable Energy Development Authority Malaysia (SEDA).
Under SEDA’s Net Energy Metering Programme or NEM3.0, Minetech will be able to sell electricity to government agencies, businesses, as well as individuals.