KUALA LUMPUR (Sept 12): Globaltec Formation Bhd has entered into a conditional sale and purchase agreement and shares subscription agreement with Wibawa Serantau Sdn Bhd (WSSB) and Empangan Sejati Sdn Bhd (ESSB) respectively.

ESSB is a wholly-owned subsidiary of WSSB and its directors are Mohd Mahyudin Zainal, Juddy Chu Yen Tien and Jasni Petrus.  

In a filing with Bursa Malaysia, Globaltec said it would be effectively acquiring a 49% stake in ESSB.

"The proposed acquisition will allow Globaltec to enter into the renewable energy (RE) producing sector, which has potential and also support from the government," it said.

"The successful implementation of the hydro business will contribute to Globaltec's long term revenue and profits, and enhance our growth potential," it added.

According to the filing, Globaltec acquired 250 shares in ESSB for RM1.4 million, via a conditional sale and purchase agreement with WSSB.  

It also entered into a share subscription agreement with ESSB for 240 shares, for a total of RM1.3 million.

One of ESSB's subsidiaries, Manifest Frontier Sdn Bhd, is a joint venture company set up by Valley Ventures Technologies Sdn Bhd (also a wholly-owned unit of ESSB) and Perak Hydro Renewable Energy Corporation Sdn Bhd.  

The joint venture agreement between Valley Ventures and Perak Hydro involves both parties jointly building, owning and operating a small hydroelectric power plant, with an installed capacity of 15 MW at Sungai Perak, Lenggong.