Majuperak signs JV for renewable energy project

Majuperak Energy Resources Sdn Bhd is teaming up with United Solar Energy (Malaysia) Sdn Bhd to venture into solar power.

KUALA LUMPUR: Majuperak Holdings Bhd's unit Majuperak Energy Resources Sdn Bhd is teaming up with United Solar Energy (Malaysia) Sdn Bhd to venture into the solar photovoltaic generating system project using the net energy metering scheme in Perak.

"The joint venture agreement presents the opportunity for MHB via MPR to be involved in renewable energy particularly solar technology in Malaysia and concurrently jointly venture into the SPS project in the state of Perak for the benefit of Tenaga Nasional electricity consumers.

"This would subsequently create additional income stream to enhance the group’s business growth and shareholders’ value," said Majuperak in a statement.

According to the group, the parties have agreed that upon securing its first supply agreement of renewable energy contract, a special purpose vehicle will be incorporated to execute the contract as well as any others in the future.

Under the terms of the agreement, Majuperak Energy Resources will have a 40% equity interest and United Solar Energy 60%.

The JV agreement is not expected to have any material impact on the earnings and earnings per share of Majuperak Group for the financial year ending Dec 31, 2020.