KUALA LUMPUR (July 17): Rooftop solar power system provider ILB Group Bhd (KL:ILB) said it is acquiring a solar energy company and its assets for RM98 million cash.
ILB said it will pay RM30 million for the purchase of Armani Sinar Sdn Bhd from Andy Woo Weng Kok, and another RM68 million for the acquisition of a solar photovoltaic (PV) system from Armani Energy Sdn Bhd.
Armani Energy is a company founded by Woo. Besides him, the other shareholders of the company are Datuk Seri Azlan Azmi and Datuk Seri Wong Sze Chien.
Armani Energy owns about 16.9 megawatt peak (MWp) of solar assets, said ILB in a filing to Bursa Malaysia on Wednesday.
The group said the acquisition of Armani Sinar and the solar PV assets will be funded by internally generated funds and bank borrowings.
As at end March, ILB’s deposits, cash and bank balances amounted to RM65.59 million, while its total borrowings stood at RM21.18 million, according to the group's latest financial statement.
ILB said the acquisition of Armani Sinar comes with a profit guarantee of at least RM8 million on an aggregate basis for the 2024, 2025 and 2026 financial years.
“The proposals will enhance the company’s shareholders’ value as it allows ILB to grow its solar businesses, increase its market share and operational capabilities and ultimately enhance its revenue and profitability,” the group said.
Upon completion of the acquisition, ILB said that it will optimise Armani Sinar’s operations and maximise the utilisation of solar assets by securing rooftop solar projects.
It added that it would seek shareholders’ approval for the Armani Sinar acquisition and the solar PV assets at an extraordinary general meeting to be convened at a later date.
The acquisition of Armani Sinar and solar PV assets are expected to be completed by the fourth quarter of 2024 and by the first quarter of 2025, respectively.
Shares of ILB closed up half a sen or 0.81% to 62 sen on Wednesday, giving the group a market capitalisation of RM119.94 million. The counter has fallen 15% year-to-date.