Kejuruteraan Asastera abandons plans to venture into solar business

Kejuruteraan Asastera abandons plans to venture into solar business
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KUALA LUMPUR (March 19): Electrical and mechanical engineering company Kejuruteraan Asastera Bhd (KAB) has called off its solar energy investment venture.

Back in January, KAB entered into a Heads of Agreement (HoA) with LeveragEdge Sdn Bhd (LSB) and LSB’s director Loo Chun Keat, to acquire a 30% stake comprising 37,500 shares in the enlarged issued share capital of LSB for RM2.1 million.

At the time, KAB said it would be expanding into the solar energy industry via the proposed acquisition.

In a stock exchange filing today, KAB said the parties have mutually agreed to terminate the HoA, with immediate effect.

“Upon the termination, LSB shall refund the initial deposit of RM1,000 to KAB within three working days and the HoA shall have no further force or effect and neither party shall have claim whatsoever against the other, whether directly or indirectly in respect of the HoA,” it said.

Shares in KAB closed 2 sen or 2.8% lower at 69 sen, giving the company a market capitalisation of RM639 million.