Sunview ventures into biogas renewable energy industry
20 Feb 2023
Solar photovoltaic facilities provider Sunview Group Bhd and three other companies are jointly acquiring a firm engaged in the operation of generation facilities that produce electricity.
The four buyers are acquiring Provectus Bioenergy Sdn Bhd for RM115,688 from Ee Hood Liang and Wong Pak Wei, the group said in a Bursa Malaysia filing.
Post-acquisition, Sunview will hold a 20% stake in Provectus. The three other partners Warrants RE Assets Sdn Bhd will control a 29% stake, Intechcity Construction Sdn Bhd a 31% stake and Pasir Lembayung Sdn Bhd a 20% stake.
It should be noted that purchasers agreed that the sale shares are sold with the outstanding loan sum under the existing facilities of RM2.68 million.
Sunview added that purchasers need not reimburse to the vendors the existing fixed deposit of RM406,000 placed as security with Hong Leong Bank Bhd.
Save for the existing facilities, Provectus shall be freed of all liabilities (including undisclosed, contingent liabilities and any other potential liabilities under the relevant tax laws) as all liabilities of Provectus to be settled at the Vendors’ own costs.
Sunview said it would use internally generated funds to pay for the Provectus stake. It expects the acquisition to be completed by the second quarter of 2023.
Sunview chief executive officer and executive director Ong Hang Ping said the investment in Provectus was in line with the group’s expansion plans into other renewable energy industry as disclosed in the recent initial public offering prospectus.
“This acquisition is our first venture into the biogas renewable energy industry and will serve as our launch pad to many more biogas renewable energy projects to come in the future,” said Ong in a statement.
Sunview’s share price has nearly tripled since it was listed on the ACE Market in October last year, with an initial offering price of 29 sen.
The stock closed three sen or 3.59% higher at 86.5 sen on Monday (Feb 20), following the news that Sunview would collaborate with Huawei Technologies (Malaysia) Sdn Bhd in the renewable energy segment, including electric vehicle charging, micro grids, telecommunications site modernisation and energy storage solutions.
At 86.5 sen, Sunview’s market capitalisation stands at RM405 million.
Source: The Edge Markets