KUALA LUMPUR (April 6): Majuperak Holdings Bhd, via its wholly-owned unit Majuperak Power Resources Sdn Bhd (MPR), will be partnering with United Solar Energy (Malaysia) Sdn Bhd (USEM) through a joint-venture (JV) agreement to jointly venture into the Solar Photovoltaic Generating System (SPS) project using the Net Energy Metering (NEM) scheme in Perak.

The JV agreement presents the opportunity for the company to be involved in renewable energy particularly solar technology in Malaysia and concurrently jointly venture into the SPS project for the benefit of Tenaga Nasional Bhd electricity consumers by securing the Supply Agreement of Renewable Energy (SARE) secured contract, said Majuperak, in a filing to Bursa Malaysia today. 

“This would subsequently create an additional income stream to enhance the group’s business growth and shareholders’ value,” the company added.

Upon securing its first SARE secured contract, a special purpose vehicle (SPV) company shall be incorporated and the said SPV will be the company that will execute, complete and maintain the project thereafter and any future SARE secured contract obtained by the JV.

Under the JV agreement, MPR will take a 40% stake and USEM will hold the remaining 60%.

The JV agreement will not have any material impact on the group’s earnings and earnings per share (EPS) for the financial year ending Dec 31, 2020, the company said.

“Notwithstanding that, it is envisaged that the JV agreement is expected to contribute positively to the overall earnings as well as the EPS of MHB Group once the potential benefits from the JV agreement is materialised,” Majuperak added.

At 2.35pm, shares in Majuperak were unchanged at 32 sen, valuing the company at RM90.48 million.