PETALING JAYA: Strengthening its presence in the renewable energy sector, Citaglobal Bhd is acquiring a 60% stake in registered solar photovoltaic provider Spectra Suria Sdn Bhd for RM2 million and a 40% stake in solar photovoltaic investor company Nova Reeco Sdn Bhd for RM3 million, both in cash.
Spectra Suria and Nova Reeco are securing projects from government departments and quasi-government agencies. Both acquisitions come with an order book of RM268 million, boosting Citaglobal’s total order book will be boosted to more than RM1.27 billion.
Along with the acquisition of a 40% stake in Nova Reeco, Citaglobal also intends to purchase irredeemable convertible preference shares in the company. These shares are convertible into an additional 20% equity interest in Nova Reeco. In addition, Citaglobal has committed to making further investments, either in the form of a shareholder's advance or redeemable preference shares with a value of at least RM7 million, in its Nova Reeco venture. This will bring its total investment in both acquisitions to a total of RM12 million.
These acquisitions are conditional on a few terms. Key among them, Spectra Suria is to be issued a letter of award from Nova Spectra Energy for its appointment as the engineering, procurement, construction and commissioning (EPCC) contractor for the Lembaga Kemajuan Ikan Malaysia project.
Spectra Suria is principally involved in EPCC works of solar photovoltaic and energy storage systems. Nova Reeco is principally involved in the business of organization, promotions and management of events, specialized design activities, and the wholesale of a variety of goods.
These proposed acquisitions are in line with the government’s recently launched National Energy Transition Roadmap, and the strategic plan of Citaglobal in expanding its renewable energy division.
Source: The Sun Daily
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