KUALA LUMPUR (Jan 13): Solarvest Holdings Bhd (KL:SLVEST)  is acquiring three plots of land in Kedah for RM19.99 million cash to secure strategic land for renewable energy asset development projects.

The solar photovoltaic provider's subsidiary Atlantic Blue Sdn Bhd has entered into two separate sale and purchase agreements with Aziho Trading Sdn Bhd to purchase the plots measuring 48.86ha in total in Mukim Gurun in Kuala Muda.

"The lands are expected to provide the company with the opportunity to secure an EPCC (engineering, procurement, construction and commissioning) contract, and/or provide recurring income from the sale of electricity, and/or future land lease income to the company," Solarvest said in a filing on Monday.

Solarvest is confident in undertaking solar energy asset development on these lands due to their strategic location. "The lands are strategically located directly below a high voltage transmission line, suitable for developing a LILO (loop-in loop-out) station with sufficient acreage for developing a large-scale solar farm," it said.

Solarvest plans to fund the acquisition using internal funds and bank borrowings. As of end-September 2024, Solarvest had cash and bank balances of RM54.52 million, while borrowings stood at RM179 million. It expects the proposed acquisition to be completed by the second quarter of 2025.

Shares in Solarvest settled six sen or 3.47% lower at RM1.67 on Monday, giving the company a market capitalisation of RM1.21 billion.