Reservoir Link Energy Bhd (Reservoir Link) announced that its wholly owned subsidiary Reservoir Link Renewable Sdn Bhd, has entered into a share sale agreement for the proposed acquisition of SAG Renewables Sdn Bhd (SAGR) from SAG Green Tech Sdn Bhd.
In a Bursa listing today (Nov 14), the group said it will a acquire entire equity stake in SAGR for a purchase consideration of RM10.5 million, comprising RM4.5 million for the sale shares and RM6 million for corporate guarantee, to be provided upon the successful transfer.
Upon completion, the acquisition will provide the energy related service provider with additional stream of recurring income and better earnings visibility.
“This is following the diversification into renewable energy asset ownership. The acquisition of SAGR will increase Reservoir Link’s renewable energy asset portfolio by an additional 13 solar photovoltaic assets.
Reservoir Link executive deputy chairman Thien Chiet Chai said following the nation’s agenda outlined in the National Energy Transition Roadmap (NETR), the group have established an internal target for ourselves to strive and achieve 100 MWp in renewable energy assets by year 2025.
To date, it has a total of 33.31 MWp under its wings.
“We believe we are on the right track and will continue to actively explore other opportunities to further grow the renewable energy space beyond just solar energy to keep up with the demand for this segment given the accelerated growth and adoption,” he said.
The group added the proposed acquisition will be funded through a combination of internally generated funds and bank borrowings.
