PETALING JAYA: Citaglobal Bhd has ramped up its renewable vitality (RE) initiatives by buying stakes in two photo voltaic photovoltaic (PV) entities for a complete of RM5 million.
In accordance with its submitting with Bursa Malaysia right this moment, Citaglobal has acquired a 60% stake in Spectra Suria Sdn Bhd for RM2 million in money, and a 40% stake in Nova Reeco Sdn Bhd for RM3 million in money.
By way of the 2 acquisitions, Citaglobal’s whole order ebook will improve by RM268 million to greater than RM1.27 billion, the submitting mentioned.
Moreover buying a 40% stake in Nova Reeco, Citaglobal has additionally expressed its intention to purchase irredeemable convertible choice shares (ICPS) within the firm.
“These shares are convertible into a further 20% fairness curiosity in Nova Reeco,” Citaglobal mentioned.
The group has additionally pledged to undertake further investments, which may take the form of a shareholder’s advance or redeemable choice shares, amounting to a minimal of RM7 million, in its Nova Reeco enterprise.
This may carry its whole funding in each acquisitions to RM12 million, Citaglobal mentioned.
The finalisation of the deliberate buy of Spectra Suria is anticipated to happen inside a span of 30 days, whereas the Nova Reeco acquisition is anticipated to conclude inside two months.
Citaglobal said that these acquisitions are topic to particular circumstances.
One among them is that Spectra Suria will likely be appointed by Nova Spectra Power because the engineering, procurement, building and commissioning (EPCC) contractor for a challenge commissioned by the Fisheries Growth Authority of Malaysia (LKIM).
Citaglobal government chairman Norza Zakaria mentioned the corporate is happy with the earnings-accretive acquisitions.
“Moreover offering us with a stable order ebook to spice up our earnings, these offers are additional proof of Citaglobal’s dedication to creating its mark within the renewable vitality trade,” mentioned Norza.
Spectra Suria is principally concerned in EPCC works associated to photo voltaic PV and vitality storage methods.
Nova Reeco primarily engages in occasion organisation, promotion, and administration, in addition to specialised design actions. Moreover, they’re concerned within the wholesale distribution of varied items.
At market shut right this moment, Citaglobal’s share worth was down 1 sen or 0.7% at RM1.41, giving it a market capitalisation of RM588.76 million.