CAB Cakaran terminates MoU signed two years ago on setting up solar farm

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KUALA LUMPUR (June 7): CAB Cakaran Corp Bhd announced today that the Memorandum of Understanding (MoU) that it signed with Panasonic Eco Solutions Malaysia Sdn Bhd related to the establishment of a solar farm in Kedah has been mutually terminated.

No reason, however, was disclosed for the termination of the MoU, which was entered into in June 2017.

As both parties have mutually agreed not to extend the MoU, CAB Cakaran said the MoU is considered lapsed since yesterday (June 6).

The MoU, which was between its wholly-owned subsidiary CAB Amesist Biomass Generation Sdn Bhd and Panasonic, was to carry out a feasibility study for establishing a joint solar farm project known as “ECONATION II PORJECT” by setting up a special purpose company (SPC) company in Malaysia in order to enhance sustainable support in relation to socio-economic development in Kedah, said CAB Cakaran in its filing with Bursa Malaysia.

In June 2017, CAB Cakaran said the SPC would jointly prepare and submit a request for proposal (RFP) of a large-scale solar photovoltaic (LSSPV) plant to the Energy Commission in Peninsular Malaysia.

Shares of CAB Cakaran closed 0.5 sen up at 52.5 sen today, giving it a market capitalisation of RM344.98 million. Over the past 12 months, the stock has fallen some 45% from 95 sen.