KUALA LUMPUR (June 24): Kee Ming Group Bhd (KL:KEEMING) has bagged a RM70 million subcontract to undertake mechanical and electrical engineering works for a large-scale solar power plant in Bukit Selambau, Kedah.
Its wholly-owned subsidiary Kee Ming Electrical Sdn Bhd accepted the letter of award from Atlantic Blue Sdn Bhd for a nearly 100MW solar power plant, the group said in a Bursa filing on Wednesday.
The contract excludes a provisional RM2 million sum for additional or contingency works that may be instructed by Atlantic Blue, which is the project’s main contractor.
Kee Ming’s scope includes the supply, delivery, installation, testing and commissioning of the solar plant and Tenaga Nasional Bhd interconnection facilities, as well as the provision of labour, materials and equipment.
Work will begin immediately, with back energisation scheduled for Dec 15, 2026, initial operations targeted for Dec 30 and commercial operations slated for Feb 28, 2027.
Atlantic Blue will pay a 10% downpayment, with the remaining payments to be made progressively based on completed and certified work.
Kee Ming said the contract is expected to contribute positively to its earnings, earnings per share and net assets for the financial year ending March 31, 2027.
The award is considered a recurrent related-party transaction, as Atlantic Blue is a wholly-owned subsidiary of Main Market-listed Solarvest Holdings Bhd (KL:SLVEST).
Kee Ming non-independent non-executive director and indirect substantial shareholder Lim Chin Siu is also Solarvest’s managing director and an indirect substantial shareholder of Atlantic Blue.
Lim abstained from the board's deliberations and vote on the contract. Kee Ming will seek shareholders’ ratification for the transaction at its forthcoming annual or extraordinary general meeting.
Solarvest, Atlantic Blue Holdings Sdn Bhd, Lim and Kee Ming major shareholder Tan Chyi Boon will also abstain from voting on the resolution.
Kee Ming’s shares closed 3.95% higher at 6 sen, valuing the company at RM520 million.