KUALA LUMPUR: Kumpulan Powernet Bhd has accepted a letter of award from Kangsar Hidro Sdn Bhd for the supply of five mini hydropower plants in Perak valued at RM354mil.
Kangsar Hidro is joint venture between Yayasan Perak and Kangsar Capital Sdn, a wholly owned subsidiary of OHP Ventures Sdn Bhd, which was established to undertake the development of the hidropower project.
The target completion date of the works is 48 months from the commencement date of Dec 24, 2024, whichever is earlier.
Kumpulan Powernet said in a statement that the award is expected to contribute positively to the net assets, consolidated earnings and earnings per share for the financial year ending June 30, 2020, to June 30, 2025.
According to the group, the contract award is expected to result in a diversion of 25% or more of the net assets of the group and could contribute 25% or more to its net profits.
"As such, the Board will make the necessary announcement and seek its shareholders’ approval on the diversification of its operations at an extraordinary general meeting to be convened in due course," it said.
The award constitutes a recurrent related party transaction.
Kumpulan Powernet deputy chairman and group managing director Mustakim Mat Nun and group CFO Amirul Afif Abd Aziz are deemed interested parties by virtue of their major shareholdings and positions on the board of OHP Ventures.
https://www.thestar.com.my/business/business-news/2020/03/31/kumpulan-powernet-accepts-rm354mil-hydropower-contract
