KUALA LUMPUR (July 24): Jentayu Sustainables Bhd (KL:JSB) said Sumitomo Corporation does not intend to extend a memorandum of understanding (MOU) the parties signed two years ago to collaborate on renewable energy projects.
The MOU is deemed to have lapsed following its expiry on July 20, and Jentayu expects to refund the RM8 million advance payment to Sumitomo in the second financial quarter ending Dec 31, 2025.
The amount will remain classified as a current liability in Jentayu’s accounts for the current financial year, the group said in a bourse filing on Thursday.
In March, Jentayu had aborted its proposed acquisition of hydro assets in Sabah, more than three years after the deals were inked. The termination incurred a total cost of RM6.35 million.
In April, Jentayu signed a 40-year power purchase agreement with Sabah Electricity Sdn Bhd for a 162-megawatt run-of-river hydroelectric project at Hulu Sungai Padas, Sipitang, with a project value of RM2.8 billion.
The group confirmed that all necessary land and resource approvals for the project had been secured from the Sabah government, and the project is expected to generate approximately RM300 million in annual recurring revenue.
Jentayu shares closed 0.5 sen or 1.1% higher at 44.5 sen on Thursday, valuing the group at RM198.54 million. Year to date, the stock has gained 3.5%.