KUALA LUMPUR (May 28): Cypark Resources Bhd said it is buying a 51% equity stake in biogas plant operator BAC Biogas (Kg Gajah) Sdn Bhd for a total consideration of RM6 million.

In an exchange filing today, Cypark said its wholly-owned subsidiary Reviva Sdn Bhd had entered into an agreement to purchase 1.53 million ordinary shares in BAC, representing a 51% share in the company.

BAC is principally engaged in the business of developing and operating a 1.55 megawatt (MW) palm oil mill effluent biogas plant in Kg Gajah, Perak.

Cypark said the biogas operator had previously signed a 16-year renewable energy power purchase agreement with Tenaga Nasional Bhd to sell energy to the latter.

The company said the acquisition is to facilitate the group’s participation in renewable energy business and having considered all aspects of the acquisition, it is of the opinion that the purchase is in the best interest of the group.

Shares in Cypark closed unchanged at 88 sen today, giving it a total market capitalisation of RM405.48 million.