KUALA LUMPUR (Dec 23): Solarvest Holdings Bhd (KL:SLVEST) is buying a 22% stake in ACE Market-listed Solar District Cooling Group Bhd (KL:SDCG) from its controlling shareholders, managing director Kong Kam Onn and his wife, for RM41.96 million in cash, to gain a foothold in solar thermal systems and energy-saving services.

The clean energy player is acquiring the stake, equivalent to 93.24 million shares, from Kong and Liuk Ing Hong, who is also an executive director of the company, via a direct business transaction, according to a Bursa Malaysia filing.

Solarvest bought 83.92 million shares (19.8%) from Kong for RM37.76 million and 9.32 million shares (2.2%) from Liuk for RM4.2 million. After the deal, Kong will hold 45% and Liuk 5% of the company.

According to Solarvest, the purchase consideration of 45 sen per share represents a 22.41% discount to the five-day volume-weighted average market price (VWAP) of 58 sen up to Monday (Dec 22). The transaction is to be fully satisfied in cash, funded entirely from internally generated funds.

Solar District Cooling, which made its debut on the ACE Market of Bursa Malaysia in September last year, is principally involved in the provision and maintenance of building management systems (BMS), solar thermal systems and other energy-related services, as well as mechanical and electrical works and project management services.

Solarvest said the deal is expected to generate operational and commercial synergies, including opportunities for integrated energy solutions and cross-selling between the two companies.

The company also expects the acquisition to boost profitability and strengthen its financial position.

In the cumulative nine months ended Sept 30, 2025 (9MFY2025), Solar District Cooling recorded a revenue of RM18.2 million, up from RM16.1 million, and profit before tax of RM4.58 million, compared with RM2.66 million a year earlier.

The revenue boost came mainly from the BMS segment, driven by a federal government project started this year and expected to finish next quarter, along with ongoing projects like Precinct 8 Putrajaya and the Ministry of Energy Transition and Water Transformation, both due early next year.

Solar District Cooling plans to focus on BMS, solar thermal, and energy-saving services, while expanding into solar PV. Its 2026–2027 initiatives include investing in drones with thermal sensors, solar panel cleaning systems, upgraded ICT monitoring, and solar PV projects under power purchase agreements.

Shares in Solarvest ended nine sen, or 2.9%, higher at RM3.24 on Tuesday, valuing the company at RM3.05 billion. Year to date, the counter has jumped over 91%. Meanwhile, Solar District Cooling rose half a sen, or 0.9%, to 58.5 sen, giving it a market capitalisation of RM247.9 million.