Permaju, Vsolar team up to bid for RM217m large-scale solar power project

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KUALA LUMPUR (Sep 1): Permaju Industries Bhd has teamed up with Vsolar Group Bhd for a RM217 million large-scale solar power project in Seremban.

The group said its unit Genbayu Gemilang Sdn Bhd has inked a joint venture (JV) agreement with Vsolar to regulate their relationship as shareholders of Cubetech Asia Sdn Bhd, which is bidding for the project.

"Cubetech Asia intends to submit its tender to build and operate a large-scale solar 4 (LSS4) proposed 50MW plant in Seremban subject to the terms and conditions stipulated in the JV agreement," the group said in a bourse filing.

"The project consists of terms including a concession period under a power purchase agreement with Tenaga Nasional Bhd, spanning 21 years starting from the commercial operation date by Dec 31, 2023," it added.

Under the agreement, Genbayu Gemilang will lease the required land to Cubetech Asia at no cost to undertake the project. The former will hold a 70% stake in Cubetech Asia, while Vsolar will hold the remaining 30% equity interest.

Permaju said Vsolar will manage and operate Cubetech Asia and assist the latter to secure financing for the project via a mix of equity and debt financing amounting to RM173.6 million and RM43.4 million respectively.

Vsolar is also to assist Cubetech to secure a bid bond amounting to RM1 million and a performance bond totalling RM10 million in the event the latter is awarded with the project.

"The JV agreement will provide opportunities for the parties to establish a strategic partnership for various activities based on the respective parties' expertise and strengths which allow the parties to tap into each other's expertise, networks and resources," said Permaju.

Shares in Permaju closed unchanged at 30 sen with 7.08 million units done. This gives the group a market capitalisation of RM58.78 million.

Vsolar's share price settled half a sen or 9.09% higher at six sen with 62.48 million units changing hands. This values the firm at RM103.52 million.