KUALA LUMPUR (March 12): Sedania Innovator Bhd has teamed up with Matrix Energy Sdn Bhd (MESB) to jointly deliver green technology (GreenTech) solutions to a major telecommunications company (telco) in Malaysia, aiming to achieve annual savings of 22% in energy costs.

Sedania said the rationale for the partnership is consistent with its corporate objective of profit maximisation, enhancement of shareholders’ value and improve business sustainability. "The contract is also part of the group’s venture in sustainable technology and is expected to contribute positively to the growth of the company," it added.

In a filing with Bursa Malaysia today, Sedania said its wholly-owned subsidiary IDOTTV Sdn Bhd has entered into an agreement with MESB for the partnership to design, install and commissioning of energy saving devices and to provide GreenTech solutions at selected facilities owned by the telco.

"The agreement will commence from March 9 and will continue throughout the period of 10 years from the date the GreenTech solutions are installed in each site," it added. The expected timeframe for the installation of the solutions to be completed is seven months ending Sept 30, 2018.

Based on the telco’s historical energy consumption of selected buildings, averaging at RM2 million per month, Sedania said the contract will target a total electrical bill saving of RM56 million for the telco over the next 10 years.

"Part of the achieved savings will be apportioned to Sedania, to cover the technology investment cost, as well as add on to its recurring revenue," it added.

Under the partnership, IDOTTV will be responsible to procure GreenTech solutions at its own costs and expenses.

IDOTTV and MESB will project manage and provide installation of the green technology solutions at the pre-determined locations and any selection of vendor or supplier will be at IDOTTV’s discretion.

The contract is expected to contribute positively to Sedania's earnings and net assets per share for the financial years ending Dec 31, 2018 to 2028.

Sedania shares closed unchanged at 29 sen today, bringing a market capitalisation of RM65.48 million.