SLVEST

1.520

-0.04 (-2.6%)

MEMORANDUM OF UNDERSTANDING SOLARVEST HOLDINGS BERHAD ("SOLARVEST" OR "THE COMPANY") - MEMORANDUM OF UNDERSTANDING BETWEEN ADVANCECON SOLAR SDN. BHD. AND SOLARVEST ENERGY SDN. BHD., A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY

SOLARVEST HOLDINGS BERHAD

Type Announcement
Subject MEMORANDUM OF UNDERSTANDING
Description
SOLARVEST HOLDINGS BERHAD ("SOLARVEST" OR "THE COMPANY") - MEMORANDUM OF UNDERSTANDING BETWEEN ADVANCECON SOLAR SDN. BHD. AND SOLARVEST ENERGY SDN. BHD., A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY
1. INTRODUCTION

The Board of Directors of the Company wishes to announce that its wholly-owned subsidiary, Solarvest Energy Sdn. Bhd. (“Solarvest Energy”), had on 18 February 2020 entered into a Memorandum of Understanding (“MOU”) with Advancecon Solar Sdn. Bhd. (“Advancecon”) to jointly co-operate for the purposes of undertaking solar renewable energy projects in Malaysia under the Commercial and Industrial category (“Projects”).

(Advancecon and Solarvest Energy, shall hereinafter referred to collectively as “Parties” and individually as “Party”, where the context so requires).

2. INFORMATION ON ADVANCECON

Advancecon was incorporated in Malaysia as a private company limited by shares and is a subsidiary of Advancecon Holdings Berhad, a public company listed on the Main Market of Bursa Malaysia Securities Berhad.

Advancecon is principally a solar photovoltaic investor registered under Sustainable Energy Development Authority (SEDA) for solar renewable energy projects.

3. INFORMATION ON SOLARVEST ENERGY

Solarvest Energy was incorporated in Malaysia as a private company limited by shares and it is a wholly-owned subsidiary of Atlantic Blue Sdn. Bhd., which in turn is a wholly-owned subsidiary of the Company.

Solarvest Energy is principally involved in the provision of Engineering, Procurement, Construction and Commissioning (“EPCC”) services for solar photovoltaics system.

4. SALIENT TERMS OF THE MOU 

The MOU expressed the intention of the Parties to jointly co-operate for the purposes of the Projects:

4.1     Advancecon is desirous to engage Solarvest Energy as the exclusive contractor for the EPCC works for the Projects (“EPCC Contractor”) and Solarvest Energy is willing to act as the EPCC Contractor for the Projects.

4.2     The Parties agree to use their best endeavour to assist and co-operate with each other in the implementation and execution of the Projects, including participating in bidding for the Projects.

4.3     The Parties’ detailed scope of work and responsibilities shall be further defined in a separate definitive agreement for each of the Projects to be undertaken by the Parties. The content of the MOU shall form an integral part of the said agreement.

4.4     Both Parties shall utilise their resources and experiences to establish joint venture (if necessary) for each of the Projects to be undertaken by the Parties.

4.5     The Parties agree to be responsible for and shall bear its own costs and expenses of any kind committed or incurred in the performance of the MOU.

4.6     The MOU shall enter into force from the date of signing by the Parties and shall be valid until the date where the Parties agree to mutually terminate this MOU in writing.

5. FINANCIAL EFFECTS 

The MOU by itself is not expected to have any material effect on the net assets and earnings per share of the Company for the financial year ending 31 March 2020, however, upon the successful implementation and execution of the Projects pursuant to the terms as set out in the MOU, it is expected that the Projects will contribute positively to the future financial performance of the Company.

6. APPROVAL REQUIRED 

No approval is required from the Company’s shareholders to enter into the MOU with Advancecon.

7. DIRECTORS’ AND MAJOR SHAREHOLDERS’ AND/OR PERSONS CONNECTED WITH A DIRECTOR OR MAJOR SHARHOLDER’S INTERESTS 

None of the Directors and/or major shareholders or persons connected to them has any interests, direct or indirect, in the MOU.

8. STATEMENT BY THE BOARD OF DIRECTORS

The Board is of the opinion that entering into the MOU with Advancecon is in the best interest of the Company.

This announcement is dated 18 February 2020.





Announcement Info

Company Name SOLARVEST HOLDINGS BERHAD
Stock Name SLVEST
Date Announced 18 Feb 2020
Category General Announcement for PLC
Reference Number GA1-17022020-00043