Key Takeaways
- 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.
Anu Bhambhani
Anu Bhambhani is the Senior News Editor of TaiyangNews
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