VSOLAR

0.030

-0.005 (-14.3%)

Acquisition of 1.3MWP Solar Photovoltaic System at Lot 3684, Jalan Kampung Orang Asli, Kg. Baru, 48500 Klang, Selangor (“Solar PV System”) by Vsolar Engineering Sdn Bhd (“VESB), a subsidiary of Vsolar Group Berhad, from Fast Solar Sdn. Bhd (“FSSB” or “Vendor”), a wholly-owned subsidiary of Fast Energy Berhad (“Fast Energy”), for a purchase consideration of RM3,000,000.00 (“Purchase Consideration”) (“Acquisition”)

VSOLAR GROUP BERHAD

Type Reply to Query
Reply to Bursa Malaysia's Query Letter - Reference ID IQL-24012025-00001
Subject Acquisition of 1.3MWP Solar Photovoltaic System at Lot 3684, Jalan Kampung Orang Asli, Kg. Baru, 48500 Klang, Selangor (“Solar PV System”) by Vsolar Engineering Sdn Bhd (“VESB), a subsidiary of Vsolar Group Berhad, from Fast Solar Sdn. Bhd (“FSSB” or “Vendor”), a wholly-owned subsidiary of Fast Energy Berhad (“Fast Energy”), for a purchase consideration of RM3,000,000.00 (“Purchase Consideration”) (“Acquisition”)
Description 
VSOLAR GROUP BERHAD (VSOLAR OR THE COMPANY)
SALE AND PURCHASE AGREEMENT WITH FAST SOLAR SDN. BHD. (PROPOSED ACQUISITION)
Query Letter Contents

We refer to your Company’s announcement dated 23 January 2025, in respect of the aforesaid matter.


In this connection, kindly furnish Bursa Securities with the following additional information for public release:-

 

1.

The amount and date of payment of the deposit of the Purchase Consideration.

2.

Quantification of the Balance Purchase Consideration.

3.

The basis of arriving at the Purchase Consideration, other than on a “willing buyer willing seller” basis. If it was based on net assets, the year the net book value were taken into consideration, quantifying the net book value and stating whether it was based on audited financial statements; and justification on the Purchase Consideration.

4.

The net book value of the Solar PV System based on FSSB’s latest audited accounts.

5.

The commencement date and expiry date of the duration of the provision of the Energy Output to the Customer to be novated to VESB.

6.

The estimated timeframe to complete the Acquisition.

7.

Prospects of the Solar PV System.

8.

The original cost of investment to FSSB/Fast Energy in the Solar PV System, and date of such investment.

9.

The total amount transacted with FSSB/Fast Energy in the preceding 12 months.

 

Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.

 

Yours faithfully

Listing

Regulation

 

copy : Market Surveillance Dept., Securities Commission

Reference is made to the Company’s announcement dated 23 January 2025 (Announcement) pertaining to the Proposed Acquisition.

 

The Board wishes to announce the following additional information:

 

(The abbreviations used herein are consistent with those stated in the Announcement unless defined otherwise.)

  1. Deposit Payments

    The 1st Payment of RM300,000.00 was paid on 22 January 2025 and 2nd Payment of RM1,200,000.00 was paid on 24 January 2025. 
     
  2. The balance Purchase Consideration of RM1,500,000.00 will be paid on completion date of the SPA, which shall take place within 14 days from the fulfilment of all the conditions precedent of the SPA. The conditions precedent is to be satisfied within 30 days from the date of the SPA or any date so extended by the Parties.
     
  3. The basis of arriving at the Purchase Consideration was based on the healthy financial projections of the Solar PV System in terms of the return of investment and internal rate of return calculations that illustrates the purchase of the Solar PV System is estimated to be profitable and would be a great addition to the list of Renewable Energy assets already owned by VESB's portfolio. 
     
  4. The net book value of the Solar PV System based on FSSB’s latest audited accounts as at 31 December 2023 is RM2,640,733.41.
     
  5. Based on the SPPA the commencement date of the Energy Output to the Customer is 26 January 2022 which is the commercial operation date of the Solar PV System and shall expire 25 years from 26 January 2022.
     
  6. The Parties to the SPA are estimating to complete the Acquisition looking to complete the Acquisition within 44 days from the date of the SPA provided the conditions precedent are fulfilled.  
     
  7. The prospects for the Solar PV System are very positive with a remaining lifespan of approximately 22 years of maximum efficiency for Solar PV generation output since commencing on 26 January 2022. The manufacturer’s warranties for the solar panels of the Solar PV System are still valid for another 13 years whereas the manufacturer’s warranty for the inverters are still valid for the 3 years with the option to purchase extended warranties. With the effects of global warming and the government’s sustainability initiatives, Vsolar believe that the overall annual energy yield over time will steadily increase thus providing healthier annual Solar PV revenue streams and profitability.
     
  8. The original cost of investment to FSSB/Fast Energy for the Solar PV System is RM2,860,000.00.
     
  9. No transaction has been transacted in the preceding 12 months between VESB with FSSB/Fast Energy. 
     

This announcement is dated 27 January 2025.


Announcement Info

Company Name VSOLAR GROUP BERHAD
Stock Name VSOLAR
Date Announced 27 Jan 2025
Category General Announcement for PLC
Reference Number GA1-27012025-00063


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