KAB's shareholders approve purchase of Indonesian hydropower plant


KAB founder and managing director Datuk Lai Keng Onn

KUALA LUMPUR: Kejuruteraan Asastera Bhd's (KAB) wholly-owned subsidiary KAB Energy Holdings Sdn Bhd has got the nod from shareholders for the proposed acquisition of a mini hydropower plant in Indonesia.

In a statement, the engineering and energy solutions provider said the proposal was passed at the extraordinary general meeting held today for the acquisition of PT Inpola Mitra Elektrindo, which owns and operates an 11MW mini-hydropower plant in the District of Pakpak Bharat, North Sumatera.

The power plant was developed, owned, and operated by PT IME under a power purchase agreement (PPA) with PT Perusahaan Listrik Negara (PLN), the state-owned electricity company of Indonesia.

The PPA has an initial concession period of 20 years from the commercial operation date, which was achieved on Oct 12, 2021.

Upon completion of the Proposed Acquisition, PT IME's mini hydropower plant is expected to provide KAB with a stable and recurring income stream.

"The proposed acquisition marks an exciting milestone for KAB as it provides a stable recurring source of income to the Group whilst it also gives a direct foothold in the lucrative hydropower industry.

"This move is in line with our overall business strategy in expanding our suite of solutions for the SES segment to meet our customers’ every-growing needs,” said KAB group managing director Datuk Lai Keng Onn.

He added that the group is committed to pursuing larger and more ambitious sustainable energy projects to drive the growth of the SES segment as global demand increases.

The group anticipates that the SES segment will be the main contributor, in-line with anticipated improvement in financial performance, and eventually achieve more than 50% operating profit contribution in the foreseeable future.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Business News

Ringgit surges: Economic reforms, potential us rate cut propel currency to be Asia's second best performer
US producer prices rise moderately in June
MRL confirms ECRL partnership plans with CCCC remain unchanged
Tafi Industries wins RM207.5mil contract for Setia Alam development
Minetech bags RM4.05mil contract for Banting Industrial City project
Redtone Digital acquires 7.12% stake in Theta Edge for RM13.93mil
Ringgit gains ground vs US dollar amidst improved sentiment
BNPL credit exposure stands at RM1.42bil in 1Q
Astaka launches Phase 3 of One Bukit Senyum with RM600mil GDV
Uzma explores hydrocarbon fuel deal in Papua New Guinea

Others Also Read