KUALA LUMPUR (April 30): Jaycorp Bhd (KL:JAYCORP) plans to acquire the remaining 40% stake in its subsidiary Jaycorp Green Energy Sdn Bhd (JGE) for RM15 million in cash, as part of a broader move to strengthen its presence in the renewable energy segment and diversify its earnings base.

The proposed acquisition will see Jaycorp purchasing 2.33 million shares from Microban (M) Sdn Bhd, taking its interest in JGE from 60% to full ownership.

Upon completion, JGE will become a wholly owned subsidiary, allowing the group to fully consolidate its earnings from the business.

"The proposed acquisition will eliminate the non-controlling interest, enabling the group's shareholders to benefit from the full earnings of JGE going forward," Jaycorp said in a Bursa Malaysia filing on Thursday.

The group said the deal would be funded entirely through internally generated funds, with no additional liabilities expected to be assumed.

Following the acquisition, Jaycorp is proposing to formally diversify its existing business to include the renewable energy segment, covering the investment, development and operation of assets such as solar, biomass, biogas and waste-to-energy facilities.

At present, the group's core businesses include the manufacture and sale of furniture, packaging, wood processing, construction, and other trading and property-related activities.

JGE is principally involved in renewable energy, biomass and environmentally friendly waste treatment, including the production of industrial steam using palm oil waste for the oleochemical industry.

Jaycorp noted that the renewable energy segment has been the only division to record growth in both revenue and profitability in the financial year ended July 31, 2025, underscoring its potential as a more resilient earnings contributor.

"The proposed diversification enables the group to develop the renewable energy segment as a core and growing pillar of the enlarged group's business, alongside its existing manufacturing activities, providing the strategic clarity and flexibility to pursue opportunities within the renewable energy value chain," it said.

Barring unforeseen circumstances, the proposals are expected to be completed by the fourth quarter of 2026, subject to shareholders' approval.

Jaycorp shares closed unchanged at 22.5 sen on Thursday, valuing the group at RM61.8 million. Year to date, the stock has fallen 25%.