- Malaysia’s ARB Berhad has acquired 51% stake in a solar power company CMBS for MYR 5.5 million ($1.33 million)
- The acquisition helps the company also own stake in a solar power plant CMBS is developing for USAINS Infotech in Penang region of Malaysia
- ARB is eying gain from the long-term stable income this solar PV project will generate as it is likely to churn a cash flow of around MYR 100 million ($24 million)
An investment holding company in Malaysia, ARB Berhad has entered an agreement to acquire a 51% stake in local solar installer C&M Renewable Energy Technology Sdn Bhd (CMSB) for MYR 5.5 million ($1.33 million). The main highlight of this investment is that ARB gets access to the solar power project CMBS is developing for the USM Faculty of Engineering that’s expected to generate a cash flow of around MYR 100 million ($24 million).
In 2018, CMSB entered into an agreement with USAINS Infotech Sdn Bhd (UISB), a subsidiary of University Sains Malaysia, to install, operate and maintain a solar power plant on 364 acres in Nibong Tebal, Penang region of Malaysia. In return, UISB will purchase solar power generated from the solar array for a pre-determined tariff.
For ARB, it expects the acquisition to contribute positively to the company’s long-term revenue and profits as it sees 30-year long-term stable income from the project. With this, it hopes to reduce its dependence on income derived from its existing business activities.