KUALA LUMPUR (Dec 23): Johor Plantations Group Bhd (KL:JPG) said on Tuesday it is buying the remaining 45% of JPG Greenergy Ventures, giving it full ownership and greater control to expand its bioenergy business.

A share sale agreement was executed with MTC Orec Sdn Bhd on Monday, according to its statement. The group will have full ownership of the entity upon completion.  

“The consolidation enables JPG to streamline execution, optimise capital allocation and integrate renewable energy more effectively into its core plantation operations,” JPG's statement read. 

The group did not disclose the purchase consideration, and no separate announcement was made on the mode of payments. 

Established in 2019, JPG Greenergy Ventures serves as the group’s primary platform for renewable energy initiatives, including biomethane production, biogas upgrading and the conversion of palm oil by-products into low-carbon energy solutions.

Its 2024 annual report showed that JPG Greenergy Ventures recorded total revenue of RM660,000 for the seven months it was operational during the year. Following a fire in November 2023, the facility was recommissioned in May 2024 to resume biomethane supply to Gas Malaysia Green Venture Sdn Bhd, a unit of Gas Malaysia Bhd (KL:GASMSIA). 

The selling shareholder MTC Orec is a provider of turnkey engineering, procurement, construction, installation and commissioning services for the biomethane upgrading plant at JPG’s Sedenak palm oil mill.

MTC Orec is jointly owned by MTC Engineering Consultancy Sdn Bhd and O’Rec Energy Sdn Bhd. 

MTC Engineering Consultancy is held by Mohd Fauzi Ya’akob (66.6%), Norshah Hafeez Shuaib (30%), Hud Halid (1.4%), Mohd Rashid Ya’akob (1.4%) and Mohd Hisham Che Aun (0.6%), while O’Rec Energy is owned equally by Zahari Mohamad and Zulkifli Mohamad. 

None of the shareholders are related parties to JPG.

"The consolidation also strengthens the group’s alignment with Malaysia’s energy transition and national net-zero ambitions, while supporting long-term value creation through lower carbon intensity and diversified revenue streams," JPG said. 

It added that it will continue to evaluate opportunities to expand its renewable and bioenergy capabilities in line with its long-term sustainability and growth strategy.

Shares in Johor Plantations settled three sen or 1.91% higher at RM1.60 on Tuesday, valuing the group at RM4 billion. Year to date, the stock has gained more than 22%.