KUALA LUMPUR (Feb 23): Vsolar Group Bhd has aborted a plan to build a solar power generation plant, with a capacity of up to 30 megawatts (MW) at Universiti Teknologi Malaysia (UTM).
In a filing with Bursa Malaysia today, Vsolar said both parties have mutually terminated the joint venture agreement (JVA) signed on April 11 last year. No reason was given for the termination.
"Following the termination of the JVA, the company will continue to explore opportunities in the acquisition and development of other solar projects," said Vsolar.
"The mutual termination of the JVA is not expected to have a material impact on the profit and net tangible assets per share of the group for the financial year ending June 30, 2018," it added.
In April last year, Vsolar had signed the JVA with UTM to form a JV company to undertake the proposed project. VSolar was to hold an 80% stake in the JV company and UTM the remaining 20% equity interest.
Under the JV, UTM was to identify and provide a suitable parcel of land of 20 acres for every 10MW to build the solar power generation plant. On its part, Vsolar was to set aside RM2 million in the JV company over a period of four years for research and development activities related to the development of photovoltaic technology and/or its related enhancements.
Vsolar shares closed up 0.5 sen or 3.85% at 13.5 sen today, bringing a market capitalisation of RM52.12 million.