KUALA LUMPUR (May 7): Solar power specialist Pekat Group Bhd said on Tuesday that it has signed a non-binding agreement to acquire a stake in switchgears supplier EPE Switchgear (M) Sdn Bhd to expand its businesses.

Under the memorandum of understanding (MOU), Pekat and EPE Switchgear’s sole shareholder Apex Power Industry Sdn Bhd agreed to negotiate exclusively until June 30, 2024, or such later date as may be agreed mutually in writing, the company said in an exchange filing. 

The final equity interest of the EPE Switchgear to be purchased and the purchase consideration will be determined later, subject to due diligence, Pekat said.

“The MOU allows the parties to set out the key agreed terms and forms the basis of consensus for the parties to proceed with the proposed acquisition,” Pekat added.

EPE Switchgear is one of Malaysia’s largest manufacturers of medium voltage electrical switchgears, though the company is also involved in manufacturing, engineering and project activities within the power sector.

At noon break on Tuesday, Pekat’s shares were up one sen or 1.6% to 62.5 sen, valuing the company at RM403 million.