Jentayu to buy solar stake, raise RM49mil for Sabah hydro project
KUALA LUMPUR: Jentayu Sustainables Bhd plans to acquire a 51 per cent stake in Jentayu Solar Sdn Bhd for RM5.87 million and raise up to RM48.84 million via a private placement to support its renewable energy project in Sabah.
In a filing with Bursa Malaysia, the group said the stake in Jentayu Solar will be acquired from Jentayu Capital Sdn Bhd through a set-off arrangement involving part of a refundable deposit previously paid by the company.
Jentayu Solar operates a 5.99 megawatt (MW) solar plant in Pokok Sena, Kedah, under a 21-year power purchase agreement (PPA) with Tenaga Nasional Bhd that began in 2019.
Jentayu has also been granted a call option to acquire the remaining 49 per cent in Jentayu Solar from Seri Panglima Holdings Sdn Bhd for RM5.64 million within 12 months.
As Jentayu's managing director Datuk Beroz Nikmal Mirdin and his spouse Datin Nurhaida Abu Sahid are shareholders of Jentayu Capital, the acquisition is deemed a related party transaction and will require shareholder approval.
To help fund its 162MW hydropower project in Sipitang, Sabah, known as Project Oriole, Jentayu plans to issue up to 119.4 million new shares, potentially raising RM48.84 million.
Proceeds will be used primarily for the project's next phase, including expenses tied to the PPA with Sabah Electricity Sdn Bhd and securing project financing. Around RM15 million is earmarked for working capital.
Jentayu also proposed a variation in the use of RM16 million raised from a 2022 rights issue.
Initially intended for a separate hydro asset acquisition that was later aborted, RM5.87 million will now go towards funding the Jentayu Solar stake, while the balance of RM10.13 million will be channelled into future renewable energy investments.
The group said it is already in early talks to acquire a company involved in operating and maintaining a hydropower plant in East Malaysia, which could enhance internal capabilities and reduce long-term costs.
"The board believes these proposals will support the group's expansion in renewable energy and strengthen its long-term growth," it said.
Independent adviser QuantePhi Sdn Bhd has been appointed to advise non-interested shareholders on the related party aspects of the deal.
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