PUC Founder, Bioalpha to share rights to land to expand respective activities

PUC Founder, Bioalpha to share rights to land to expand respective activities
-A +A

KUALA LUMPUR (Aug 19): PUC Founder (MSC) Bhd has inked a land rights sharing agreement with Bioalpha Holdings Bhd which would enable the former to further expand its investment in the renewable energy industry and/or generate additional income for the group.

In a filing with Bursa Malaysia today, PUC Founder said it yesterday signed a memorandum of understanding (MOU) with Bioalpha in relation to the collaboration, which will see Bioalpha undertaking herbs planting activities on the lands owned by PUC Founder and/or its subsidiary on which its solar photovoltaic (PV) plants are to be located.

At the same time, PUC Founder will construct and operate solar PV plants on the lands owned by Bioalpha and/or its subsidiaries on which Bioalpha currently utilised for its herbs planting activities.

PUC Founder said the implementation of the land rights sharing is still subject to a feasibility study to be jointly carry out by the two ACE Market-listed companies to ascertain its feasibility and commercial viability.

The MOU will remain in effect for a period of 12 months, or until the execution of future collaboration agreements, whichever comes first.

"The MOU will provide an opportunity for the parties to establish collaboration for the land rights sharing based on the respective party’s expertise and strengths. The land rights sharing is expected to further expand the PUC Founder group of companies’ investment in the renewable energy industry and/or generate additional income for the group," said PUC Founder.
 
As at midday, shares in PUC Founder (fundamental: 1.85; valuation: 2.1) were unchanged at 9 sen, for a market capitalisation of RM95.92 million. Bioalpha's share price was also unchanged at 25.5 sen, with a market cap of RM118.17 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.)