KUALA LUMPUR: ARB Bhd has secured a solar panel project with RM100 million total cash flow via its stake acquisition in project owner, C&M Renewable Energy Technology Sdn Bhd (CMSB).
The firm’s wholly-owned subsidiary, ARB Development Sdn Bhd has entered into a sales and purchase agreement to acquire a 51 per cent sake in CMSB for RM5.5 million.
ARB chief executive officer (Investment & Technology) Datuk Larry Liew said the solar panel project will provide a recurring income to the group.
“This is the just the Phase 1 (364 acres in Nibong Tebal) of the bigger roadmap that the group has developed to ensure a sustainable earnings growth,” he said in a statement.
He said ARB will also provide the solar enterprise resource planning solutions, which provides real-time energy consumption data in the USM Areas.
“This is the key to identifying areas where energy consumption can be reduced, and significant cost savings can be realised,” he added.
CMSB had on November 20 entered into an agreement with USAINS Infotech Sdn Bhd, a wholly-owned subsidiary of University Sains Malaysia to install, operate and manage the solar photovoltaic system at USM Faculty of Engineering located on a parcel of land measuring about 364 acres in Nibong Tebal, Penang, Malaysia.
CMSB will then charge USAINS at an agreed solar charging rate or any revised solar charging rate, upon the solar energy generated by the Solar PV System.
A filing with Bursa Malaysia shows that the project is expected to generate a cash flow ranging between RM5 million to RM11 million every year.
The net present value of such amount is estimated to be about RM100 million, based on a discount rate of 5.6 per cent over the project’s period of 30 years.