NWP buys 51% stake in Sinar Majumas for RM1.5mil

PETALING JAYA: NWP Holdings Bhd is acquiring a 51% stake in Sinar Majumas Sdn Bhd for RM1.5mil from Almaniaga Sdn Bhd, to jointly undertake and manage the installation and connection of electric and water supply to 27 refugee settlement sites in Sabah.

NWP said in a stock exchange filing that the cost was about RM700,000 per site for the initial nine sites.

It said the total expenditure should be about RM7.8mil, including the RM1.5mil consideration and RM6.3mil for construction and infrastructure cost for initial nine sites.

For the remaining 18 sites, the company said that it would be funded from the cashflow generated from the initial nine sites.

“The management views that the project would provide an immediate impact on the financials of the group, depending on how soon funding can be raised, as the project is akin to a prepaid water and electricity project whereby the refugees purchases the water upfront and ‘top-up’ as and when the credit for the prepaid water runs out,” NWP said.

NWP said Almaniaga currently holds the rights to undertake and manage the installation and connection of electric and water supply to 27 refugee settlements sites under ‘Skim Penempatan Masyarakat Pelarian’ in Sabah.

The project comes under the supervision of the Federal Special Task Force in Sabah of the National Security Council of Malaysia.

Almaniaga shall hold the remaining 49% equity interest in Sinar Majumas.

“This project needs its own research and development, and for that matter, the parties, through Sinar Majumas, will also enter into a collaboration with Universiti Malaysia Sabah for the purposes of research and development in the area of system enhancement and efficiency relating to the water and electricity distribution system,” said NWP advisor Datuk Muhammad Hatta Ab. Aziz.

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