This article first appeared in The Edge Financial Daily on March 26, 2020
KUALA LUMPUR: Kejuruteraan Asastera Bhd (KAB) is taking up an 80% stake each in two companies involved in the renewable energy and energy efficiency-related business for RM7.26 million cash, in a deal that will see it assume liabilities worth some RM4.24 million, which values the entire transaction at RM11.50 million.
The electrical engineering services company’s 90%-owned KAB Energy Power Sdn Bhd inked the heads of agreement yesterday with Invest Energy Sdn Bhd to acquire the stakes in the two companies, namely Konpro Industries Sdn Bhd (Konpro) and Meru One Sdn Bhd (Meru).
The acquisitions, which are expected to provide the group with a profitable recurring income stream, are in line with its plan to diversify its business and venture into the renewable energy sector, KAB said in a stock exchange filing.
Two plants operated by Konpro and Meru were constructed under a build, operate and transfer contract and are already operational and generating revenue.