Thursday 08 Jun 2023
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KUALA LUMPUR (Nov 10): Jentayu Sustainables Bhd has entered into a collaboration agreement with Germany-based Voith Hydro Holding GmbH & Co KG to facilitate technical and technology support for the construction, commissioning, operation and maintenance of the hydroelectric power plants develop by the company.

The agreement allows technological and knowledge transfer from a global hydropower technology company that will ensure efficient structural design, operational reliability and cost savings of the power plants developed by Jentayu Sustainables, said the company in a Bursa filing on Thursday (Nov 10).

Additionally, the collaboration will further enhance and expedite the growth and presence of Jentayu Sustainables both locally and regionally.

Jentayu Sustainables said on Tuesday (Nov 8) it had entered into the agreement with Voith Hydro, which served as a precursor to three definitive agreements to be signed within 90 days.

The first — the pre-engineering agreement — is to be signed by the subsidiaries of Voith Hydro and Jentayu Sustainables for the provision of technical expertise on certain aspects of the technical basic design of the power plants relating to the electro-mechanical equipment for the hydro projects based on the feasibility study, including boundaries and operational and design specifications.

This will be followed by the electrical and mechanical contract to be signed between Voith or Voith OU and Jentayu Sustainables' subsidiaries for the purchase of equipment and services from Voith or Voith OU exclusively at a mutually agreed price for the purpose of the hydro projects.

Lastly, an investment agreement is to be signed between Voith or Voith's affiliates and Jentayu Sustainables for the subscription of new shares in Jentayu Sustainables by Voith, which will result in Voith becoming a substantial minority shareholder of the group.

Jentayu Sustainables' principal activities include renewable energy, healthcare business, trading, distribution of building materials and other products.

Meanwhile, Voith Hydro was incorporated under the law of Germany and is a global technology company with a specialisation in electro-mechanical equipment and services relating to the operation and maintenance of hydropower plants.

As of 3.25pm on Thursday, Jentayu Sustainables' share price was 0.75% or half a sen higher at 67.5 sen, bringing the group a market capitalisation of RM238.4 million.

Edited ByLam Jian Wyn
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