KUALA LUMPUR (Jan 30): Pestech International Bhd has called off its partnership with a Japanese renewable energy power plant developer for a potential joint investment under the third cycle of the large scale solar (LSS3) scheme.

The group said the Memorandum of Understanding (MoU) signed by its wholly-owned subsidiary Pestech Power Sdn Bhd (PPW) with Japanese outfit RS Renewable KK (RSRKK) has been mutually terminated as it did not achieve the intended purpose of the MoU.

"The termination of this MoU does not have any effect on the issued and paid-up share capital, shareholdings of its substantial shareholders, net assets and gearing and earnings and earnings per share of Pestech Group," it added in a filing with Bursa Malaysia.

PPW inked the MoU with RSRKK in March last year for both parties to explore the possibility of undertaking a joint co-operation via a bid under the LSS3.

At the time, Pestech said both PPW and RSRKK would consider investing in the LSS3 project through a special purpose vehicle if the bid was successful.

RSRKK is involved in the development of renewable energy power plants in Japan and globally.

In February last year, the Government had called for bids in an open tender for RM2 billion worth of projects under LSS3 to increase electricity generation from renewable energy.

The project was initiated by the Government so that Malaysia could move away from its dependency on fossil fuels, with the aim of achieving a target of 20% of energy production from renewable sources by 2025.

Shares in Pestech closed up 3 sen or 2.4% at RM1.28 with a market capitalisation of RM978.3 million.