KUALA LUMPUR (Aug 21): Metronic Global Bhd has teamed up with a privately held company to make a joint bid to the government to build a 100-megawatt (MW) photovoltaic solar farm project in Kelantan.

In a filing with Bursa Malaysia today, Metronic said its wholly-owned subsidiary Metronic Integrated System Sdn Bhd (MISSB) has  entered into a joint venture agreement (JVA) with Halimuza Corp Sdn Bhd to jointly submit tenders to the government for the proposed photovoltaic solar farm project.

Halimuza is a 100%-owned bumiputera company, whose principal activities include project management and investment in energy, property and transportation.

Under the JVA, MISSB and Halimuza will form a JV company called Bonanza Partners Sdn Bhd to submit tenders to the government for the proposed photovoltaic solar farm project. MISSB will hold a 70% stake in Bonanza Partners, while Halimuza will own the remaining 30% shares. 

The JV company’s authorised share capital will be enlarged to RM1 million from its current authorised share capital of RM400,000. Metronic said it will fund its investment in the JV company through internal funds. 

"Should the tender be granted to Bonanza Partners, the JV company is to build a photovoltaic solar farm on 300 acres in Bachok, Kelantan. With the volume of electricity produced, it will then be sold to Tenaga National Bhd," said Metronic.

Meanwhile, the JV company will engage a technical partner, Coara Solar Sdn Bhd, to carry out the feasibility study for the purpose of the project.

"The JV is in line with Metronic’s current business direction and strategy to increase the group’s revenue. The JV will serve as a platform for Metronic to provide its current service to new customers currently not part of Metronic’s customers list," said Metronic.

Shares in Metronic (fundamental: 1.25; valuation: 0.3) closed unchanged at 8 sen today, for a market capitalisation of RM60.67 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)