KUALA LUMPUR: Opcom Holdings Bhd has proposed to diversify into the power generation and transmission business via the purchase of a 49% stake or 5.39 million shares in Transgrid Ventures Sdn Bhd for RM98mil.
Opcom, a manufacturer of fibre optic cables, said the proposed acquisition will be satisfied via a combination of cash and issuance of new shares in Opcom.
It said the inter-conditional proposals are expected to be completed in the fourth quarter of 2023.
Opcom shared in a statement that Transgrid Ventures is principally involved in engineering, procurement, construction and commissioning (EPCC) of power transmission and distribution substation infrastructure.
It also undertakes project management and engineering consultancy of power transmission and distribution infrastructure as well as supply and maintenance of equipment for power transmission and distribution substations.
It said Transgrid Ventures' subsidiary Raub Energy Ventures Sdn Bhd is also in the final stage of constructing and commissioning a renewable energy power plant using biomass feedstock (specifically palm oil empty fruit bunches) in Raub, Pahang, that will be capable of generating 4MW of electricity to Malaysia’s National Grid.
The power plant is scheduled for commercialisation in the fourth quarter of 2023, it said.
Meanwhile Trangrid group also intends to trade briquettes made from empty fruit bunches.
According to Transgrid Group CEO and managing director Datuk Sri JO Nantha Kumar JC Ramalu, the proposed acquisition and diversification exercises will enable Opcom to strategically position itself in the electricity supply industry in Malaysia.
"The growing demand for electricity in the country will support the demand for power transmission and distribution infrastructure EPCC services.
"Further, the move by the Government of Malaysia to raise the renewable energy capacity mix target from the initial 40% to 70% of the nation’s total capacity by 2050 under the Renewable Energy Strategic Development Roadmap presents opportunities for renewable energy producers," he said.