Serba Dinamik clinches RM269mil Laos hydropower jobs, to acquire 15% in London-listed Green & Smart Holdings

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KUALA LUMPUR (July 19): Serba Dinamik Holdings Bhd has secured an engineering, procurement, construction and commissioning (EPCC) contract to build two hydro power plants in Laos, which will have the capacity to generate 30 megawatt (MW) of electricity for US$66.2 million, equivalent to RM268.8 million.

Serba Dinamik said the contract was awarded by Nam Taep 1,2,3 Hydropower Co Ltd to its wholly-owned subsidiary Serba Dinamik International Ltd, which is valid throughout the next 43 months or 3.6 years.

“This collaboration with Nam Taep marks Serba Dinamik’s first step into Laos, and is in line with our strategy to increase our involvement in the energy market as well as to enlarge our market presence in Southeast Asia. We currently have a total capacity of 120MW for hydropower plants,” Serba Dinamik group managing director and group chief executive director Datuk Dr Mohd Abdul Karim Abdullah said in a media statement today.

Under the EPCC contract, Serba Dinamik said it is required to complete building two hydro power plants, Nam Taep 1 and Nam Taep 2, which are located at the Xam Tai District in Houaphan province, Laos.

For Nam Taep 1, Serba Dinamik said it will be building three power generating units, each of which is capable of generating 5MW electricity. It will also take a similar approach to build Nam Taep 2.

Separately, Serba Dinamik International has proposed to subscribe for 51.81 million of new shares, equivalent to a 15% stake, in Green & Smart Holdings Plc (GSH), which was listed on the London Stock Exchange’s AIM Market on May 12, 2016, for £3.21 million, or RM16.99 million.

Serba Dinamik said the share subscription, which is slated for completion in the third quarter of 2018, was pursuant to GSH’s on-going private placement exercise.

“The proposed subscription represents a strategic investment by Serba Dinamik with a view to enhance the future earnings of Serba Dinamik and long-term shareholders’ value,” Serba Dinamik said in a separate filing with Bursa Malaysia today.

Justifying the move, Serba Dinamik said the proposed share subscription will enable it to tender for EPCC works under GSH, which is controlled by Malaysian Technology Development Corporation Sdn Bhd, Saravanan Rasaratnam and Navindran Balakrishnan.

To-date, GSH said its wholly-owned subsidiary Green & Smart Sdn Bhd had awarded Serba Dinamik with an EPCC contract to build a 2.7MW biogas power plant in Teluk Intan, Perak.

At the same time, Serba Dinamik said it hopes to capture EPCC opportunities in the biogas sector, as the country has only 94 palm oil mills, out of the current 454 palm oil mills, that are equipped with biogas plants.

Serba Dinamik shares gained one sen or 0.28%, and closed at RM3.56 today, for a market capitalisation of RM5.23 billion.