Friday 29 Mar 2024
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KUALA LUMPUR (July 22): PUC Founder (MSC) Bhd has nixed its proposal to subscribe for three million Redeemable Convertible Preference Shares (RCPS) in Green Forever Energy Sdn Bhd (GFE) for RM3 million.

In a filing with Bursa Malaysia, PUC said both parties agreed to terminate the term sheet effective today as GFE had failed to obtain the necessary approval from the Sustainable Energy Development Authority Malaysia for its Feed-in-Tariff (FiT) application in respect to the proposed 425 kilowatt (kW) photovoltaic power plant to be constructed and operated by GFE.  

“Hence, the term sheet shall be deemed terminated and neither party shall have any claims whatsoever, directly or indirectly, against the other,” said PUC.

The termination is not expected to have any material effect on the earnings, net assets and gearing of PUC and its subsidiaries for the financial year ending December 2016, it added.

PUC Founder had inked the term sheet with GFE on Feb 19.

In a separate filing today, PUC said it has engaged with an external consultant to perform a power systems study of the electrical grid in the proposed location of an ecotype biogas electricity plant to be developed with PW Consolidated Bhd, a company involved in the business of integrated livestock farming in Malaysia.

In addition, PW has sent agricultural waste samples from its livestock farms for laboratory testing, the results of which have yet to be finalised as at the date of this announcement.

“According to initial estimates by SP Multitech Renewable Energy Sdn Bhd who was engaged to advise on the technical aspects of the project, the installation capacity of the proposed ecotype biogas electricity plant is expected to be between 700 and 1,000 kW.

“Pursuant to the MoU, the parties are now in the midst of negotiating the details of their collaboration on the project, which includes, amongst others, determining the ratio of each party’s investment into the project,” added PUC.

On Aug 24 last year, PUC said its wholly-owned subsidiary Founder Energy Sdn Bhd and PW inked an MoU to collaborate to build and operate a ecotype biogas electricity plant as a joint venture or investment scheme.

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