KUALA LUMPUR: Jakel Capital Sdn Bhd has emerged as a substantial shareholder of Cypark Resources Bhd, with a 27.33% direct and indirect stake.
In a filing with Bursa Malaysia, Cypark said it had completed its placement of 176.64 million new shares for RM67.1mil to Jakel.
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With the placement, Jakel has emerged as the single largest shareholder with a total direct and indirect shareholding of 27.33% in Cypark.
“Cypark views Jakel Capital as a new strategic bumiputra shareholder who will help preserve Cypark's status as a bumiputra-controlled public listed company and will be a long-term investor of Cypark.
“With the support of strong bumiputra investor like Jakel, Cypark expects to further optimise our strategic market position, enhance our shareholders base, expand and strengthen our business presence locally and regionally,” Cypark said.
In a separate statement, Jakel chief executive officer Muhammad Ashraf said investing in Cypark provided Jakel Group with a timely opportunity to play an active role in shaping the environmental, social & governance (ESG) issues in the country.
“For Jakel Group to remain competitive in the future, we are obliged to embrace and prioritise the ESG principles in everything that we do, towards providing greener practices, products and services.
“Through Cypark, we now have a platform and a role to play to advance Malaysia’s climate and sustainability agenda in achieving environmental sustainability by 2030,” he added.
Relative to its peers that are currently trading at more than 20 times PE ratio (PER), Cypark is currently traded at an attractive valuation of approximately 8.5x PER supported by its ongoing concession assets that provide certainty to its revenue generations for the years to come.
It currently owns and/or operates close to 150MW of renewable energy assets, and with multiple constructions of new power plants due for completion & approval, this capacity will increase to more than 400MW by mid-2023.
As at Oct 31, Cypark’s net assets attributable to owners of the company stood at RM2.14 per share.
“Moving forward, as Cypark is now an associate company of Jakel Capital, we are committed to investing in the company for the long haul and we remain bullish on the growth of its clean energy industry,” Muhammad said.
Cypark closed up 1.5 sen, or 2.88% to 54 sen. It has risen some 57% in the past six months.