KUALA LUMPUR (April 19): Meta Bright Group Bhd is forming a joint venture company (JVco) with a Bumiputera firm to bid for renewable energy (RE) projects with a Bumiputera equity requirement.

According to a bourse filing on Friday, the diversified group’s unit, FBO Land (Serendah) Sdn Bhd, has entered into a subscription and JV agreement with Bumiputera firm Doople Tech Sdn Bhd to form a JVco, in which Doople will own a 51% stake and FBO Land will hold the remainder. 

Under the agreement, FBO Land will also subscribe to one million redeemable, non-convertible preference shares (RNCPS) in the JVco at an issue price of RM1 per share. 

“The JV shall undertake the business of exploring, identifying, investing in, undertaking, commissioning and developing RE projects which require the participation of Bumiputeras,” Meta Bright said. 

The agreement is subject to conditions precedent, including approval by the respective company’s board and shareholders, as well as “waivers, consents or approvals from any third party, governmental, regulatory body or relevant authorities having jurisdiction over any part of the transactions contemplated under the agreement”.

According to Meta Bright, the substantial shareholders of Doople comprise Hakim Awaludin, Idzat Naqeuddin Daman Huri, Mohamad Ariff Zulkefli and Nexea Nominees Sdn Bhd.

In the JVco, FBO Land shall provide the financing — via the RM1 million from the subscription of RNCPS — and oversee general administration matters, while Doople will be responsible for all technical aspects, as well as application for relevant approvals, certification and licences for the RE projects. 

With the RNCPS, FBO Land shall be entitled to an annual cumulative preferential dividend of 8% per annum for the shares’ five-year tenure and will be fully redeemed at RM1 apiece at their expiry. 

Meta Bright, being the holder of RNCPS, shall rank senior to the holders of the ordinary shares in the JVco. 

“On such dissolution or winding up, each RNCPS holder shall be entitled to receive in Malaysian ringgit, an amount equal to the issue price of the RNCPS,” it said, adding that the RNCPS is non-convertible into ordinary shares.

It added that the RNCPS holder shall have the rights to receive notices, reports and audited financial statements and attend meetings of the company, but shall not be entitled to vote in person, by proxy or by attorney, in any general meeting of the company save and except with any matters that affects the rights and privileges of the RNCPS holder.

Recently, the Energy Commission (EC) kicked off the bidding process for the fifth round of the Large Scale Solar (LSS5) programme, dubbed LSS-Peralihan Tenaga SuRiA, offering a total generation quota of 2,000MW (megawatts).

Packages 1 and 2 under LSS5, with permitted generation capacities at the programme’s lower end, ranging from 1MW to 30MW, require bidders to be at least 51% Bumiputera companies. 

Meta Bright (formerly known as Eastland Equity Bhd), a diversified company with exposure to the property and hospitality businesses, shifted its focus in 2022 to RE, energy efficiency and equipment leasing with the accompanying name change. 

“The proposed JV is consistent with Meta Bright’s objective of exploring RE projects,” the company said in the filing on Friday. 

At the time of writing on Friday, shares in Meta Bright were half a sen or 3.33% lower at 14.5 sen, valuing the company at RM363.29 million. 

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