ARB acquires 51% stake in C&M Renewable Energy

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KUALA LUMPUR: ARB Bhd’s wholly-owned subsidiary, ARB Development Sdn Bhd has entered into a sales and purchase agreement (SPA) to acquire a 51% sake in C& M Renewable Energy Technology Sdn Bhd (CMSB) for RM5.5mil.

In a statement Monday, ARB, previously known as Aturmaju Resources Bhd said CMSB had on Nov 20, 2018  entered into an agreement with USAINS Infotech Sdn Bhd (UISB), 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 approximately 364 acres in Nibong Tebal, Penang.

CMSB will then charge UISB at an agreed solar charging rate or any revised solar charging rate, upon the solar energy generated by the Solar PV System.

ARB said this project was expected to generate a cash flow ranging between RM5mil to RM11mil every year. The net present value of such amount is estimated to be about RM100mil, based on a discount rate of 5.6% over the project’s period of 30 years.

“We are very pleased to announce the addition of this 30-year recurring income business to the group. Environmentally speaking, it’s absolutely the right thing to do; it will reduce global warming carbon dioxide emissions. Our customer, USM will benefit from this project by purchasing power at competitive rates,” chief executive officer (investment & technology) Datuk Larry Liew said in the statement.

“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 added.