KUALA LUMPUR (June 12): Samaiden Group Bhd (KL:SAMAIDEN) has terminated two memoranda of understanding (MOUs) on proposed renewable energy and sustainability projects in Cambodia after the initiatives failed to progress into definitive agreements.
The renewable energy specialist's indirect subsidiary, Samaiden Energy (Cambodia) Co Ltd, has issued notices to end both collaborations, with the terminations taking effect on July 12, according to bourse filings on Friday.
One of the agreements, signed in April 2023, involved Royal Group Co Ltd, Management Venture Asia (Cambodia) Ltd (MVA) and Panna Energy Sdn Bhd. The parties had planned to explore renewable energy and other sustainable economic developments on underutilised land along railway corridors operated by Royal Railway PLC in Cambodia.
A separate MOU, signed in May 2023 with Mong Sotheary Trading Co Ltd (MST), MVA and Panna, was aimed at studying and developing a biogas project in Kampong Seila, Preah Sihanouk Province, alongside other potential renewable energy and sustainability-related initiatives.
Under the proposed biogas venture, Samaiden was expected to provide engineering, procurement, construction and commissioning expertise, while MST would facilitate land access and project approvals. MVA and Panna were tasked with business consultancy, project development and financial support functions.
Samaiden said it decided to terminate the MOUs because no definitive contracts were concluded within the stipulated timeframe and neither project had achieved significant milestones.
The decision was made after considering the interests of the group, it said.
The group added that the terminations are not expected to have a material impact on earnings, net assets or gearing for the financial year ending June 30, 2026.
Samaiden shares closed flat at RM1.33 on Friday, valuing the group at RM740 million.