Reneuco Enhances Assets Ownership To 119.5MW Through Acquisition Of Adat Sanjung

Reneuco Berhad, through its wholly-owned subsidiary Reneuco RE Sdn. Bhd., Entered into a conditional share sale agreement with OHP Ventures Sdn. Bhd. to acquire Adat Sanjung Sdn. Bhd (ASSB), the direct holding company of Pristine Falcon Sdn. Bhd.

Under the SSA, Reneuco RE will acquire 10,000 ordinary shares in ASSB, representing the entire equity interest of the company, for a purchase consideration of RM90 million (Purchase Consideration). The Purchase Consideration will be paid via a combination of cash payment of RM20 million as well as the allotment and issuance of 318,181,819 new ordinary shares in Reneuco (“Consideration Shares”) at an issue price of RM0.22 per Consideration Share subject to the terms and conditions contained in the SSA.

Simultaneously, OVSB will renounce up to 87,662,338 Consideration Shares to E&E Catalyst Sdn. Bhd. (“E&E Catalyst”) for the acquisition by ASSB of the 10,000,000 redeemable cumulative convertible preference shares owned by E&E Catalyst in ORP pursuant to the Proposed Acquisition.

The Proposed Acquisition will also entail the indirect acquisition of 70% equity interest in One River Power Sdn. Bhd. (“ORP”), a feed-in approval holder of the development for three small hydro plants located in Kota Marudu, Sabah, Malaysia.

Upon the completion of the Proposed Acquisition, Reneuco will see significant changes in its Group structure with one being the entry of E&E Catalyst holding a 10.18% equity in the Group. E&E Catalyst is a wholly-owned subsidiary of Kumpulan Modal Perdana Sdn. Bhd., a Ministry of Finance-owned venture capitalist venture capital firm.

Concurrently, Reneuco’s Executive Chairman Datuk Mustakim Mat Nun and Group Chief Executive Officer Amirul Afif Abd Aziz who are deemed Interested Parties by virtue of their interests in Reneuco and OVSB together with other persons acting in concert with them will increase their collective shareholdings from 7.36% to 31.41% thus solidifying their control over the Group.

“We are delighted to welcome E&E Catalyst into our fold. Their ownership of a big strategic substantial stake in Reneuco is yet another major endorsement which signifies their belief in our expertise in the renewable, sustainable, and green segment. This new ownership composition will further strengthen our ability to achieve our goal of becoming the one-stop, wide-ranging renewable, sustainable, and green solutions provider in both the local and international markets,” said Datuk Mustakim.

“In addition, the completion of the Proposed Acquisition will mark another milestone for Reneuco as it will enhance our asset ownership in the renewable energy segment by another 29.1MW. This, on top of our existing solar asset in Pekan, Pahang with a total generation capacity of 50MW and our existing hydro asset with a total generation capacity of 40.4MW in Gua Musang, Kelantan will bring the total up to 119.5MW, a big step on our way to become a truly renewable energy and sustainable economy powerhouse.

Barring any unforeseen circumstances, the Group expects the Proposed Acquisition to be completed in the fourth quarter of 2022.

Reneuco Berhad (“Reneuco” or “the Group”) (formerly known as KPower Berhad) operates in the sustainable energy and utilities segment and specialises in Renewable Energy (“RE”).

Incorporated on 3 rd February 1997, Reneuco was listed on 22 nd March 2002 as a textile manufacturing company and was subsequently transferred to the Main Market of Bursa Securities in 2009.

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