KUALA LUMPUR (June 18): PUC Bhd (KL:PUC) is proposing to acquire a battery energy storage systems company, marking the digital services group’s entry into the energy storage sector.

The acquisition of H BESS Sdn Bhd for RM6.75 million will be funded through a private placement of up to 304.8 million new shares, equivalent to 10% of PUC’s existing issued share capital, said PUC in a Bursa Malaysia filing on Thursday.

Based on an illustrative issue price of 3.44 sen per placement share, PUC expects to raise about RM10.49 million.

Of the proceeds, RM6.75 million will be used to fund the acquisition, RM3.02 million for H BESS’ working capital and RM720,000 for expenses related to the proposals.

PUC said the placement shares may be issued at a discount of up to 10% to the group’s five-day volume-weighted average market price and will be placed with independent third-party investors to be identified later.

The group said H BESS' acquisition would provide an alternative source of revenue to supplement its existing digital platform businesses, which include e-commerce, electronic money, loyalty-point redemption and digital payment services.

H BESS, incorporated in March 2025, is involved in the assembly and trading of battery energy storage systems (BESS), which store electricity for later use and help stabilise power supply.

The company does not yet have audited financial statements and currently has no employees apart from its directors. PUC intends to establish a team of about 15 to 20 employees following the acquisition.

H BESS received a non-binding Letter of Intent on June 11 from the operator of a five-star hotel in Kuala Lumpur for the supply and installation of a 4,626 kilowatt-hour BESS system, said PUC, noting that this would be H BESS’ maiden project.

H BESS had also entered into a preliminary term sheet with China-based Hithium Tech HK Ltd in November 2025 to establish a BESS assembly line in Malaysia with annual production capacity of two gigawatt-hours. The parties intend to sign definitive agreements within three months, which would give H BESS exclusive rights to assemble and deliver Hithium battery packs and BESS containers in Malaysia.

PUC said the current owners of H BLESS, Yong Tzen Wae and Datuk Chua Sai Men, have guaranteed that the company will achieve an aggregate net profit of RM3.5 million over the three financial years ending Dec 31, 2028. This comprises estimated net profit of RM1.5 million for FY2027 and RM2 million for FY2028, with no profit forecast for FY2026.