KUALA LUMPUR (Aug 6): Advancecon Holdings Bhd's solar power unit has inked an agreement with hypermarket operator Mydin Mohamed Holdings Bhd to develop a rooftop solar power system to be installed at the latter's outlet in Bandar Seremban Utama, Negeri Sembilan.

The memorandum of understanding (MoU), according to Advancecon's bourse filing today, Advancecon's wholly-owned Advancecon Solar Sdn Bhd shall develop a 2,344.32kWp solar photovoltaic system for the said outlet throughout the terms of a supply agreement with renewable energy (SARE) among Mydin, Advancecon Solar and Tenaga Nasional Bhd, with ownership, operation and maintenance of the system to be transferred to Mydin after the expiration of the SARE terms.

Under the preliminary agreement, Advancecon Solar will also undertake a feasibility study on five other Mydin hypermarkets.

Subsequently, it will proceed to negotiate on further terms relating to the project. In the event all the parties agree to the terms of the project, they will enter into the SARE and other ancillary agreements with the relevant parties within six months from the signing of this MoU, Advancecon said.

"In the event the MoU results in definitive agreement between Advance Solar and Mydin on the project, the implementation thereof is expected to have a positive impact on the future earnings of Advancecon Group," the filing further read.

Advancecon shares finished unchanged at 37.5 sen today, valuing it at some RM151.64 million.