KUALA LUMPUR (Jan 15): Pestech International Bhd, which is engaged in the provision of electrical power facilities, is expanding its business in Cambodia by acquiring a 94% stake in a Cambodian company.
In a filing today, the group said its unit Astoria Solar Farm Sdn Bhd (ASF) is investing US$4 million (about RM16 million) to acquire from two individuals, a 94% stake in Green Sustainable Ventures (Cambodia) Co Ltd (GSV).
The proposed acquisition will give the group super-majority rights over the development of a 20-year concession of a 20MW AC large-scale solar farm project in Bavet City, in the Svay Rieng Province of Cambodia.
It said GSV has procured a power purchase agreement (PPA) with Electricité du Cambodge (EDC) under the Build-Own-Operate model with a power purchase price of 7.6 US cents per kWh.
“Upon the proposed acquisition of the 94% stake, GSV shall be the developer and undertake the project management of all engineering, procurement and construction (EPC) functions,” it said.
Meanwhile, it said ASF, being the super majority shareholder in GSV, may determine the appointment of the EPC and operations and maintenance (O&M) company to undertake the EPC scope for the entire project and O&M for the duration of the PPA.
The proposed acquisition is expected to contribute to the profitability of the group throughout the duration of the PPA.
Pestech closed unchanged at RM1.28, for a market capitalisation of RM978.3 million.
http://www.theedgemarkets.com/article/pestech-buys-solar-farm-project-cambodia-us4mil
