PETALING JAYA: Mega First Corp Bhd has proposed to acquire 3.38 million ordinary shares, representing a 20% equity interest, in Don Sahong Power Co Ltd (DSPC) for US$85mil or RM396mil.
In a Bursa Malaysia filing yesterday, Mega First Corp said it had entered into a share transfer agreement via its subsidiary Mega Ventures Ltd, with vendor and stakeholder EDL-Generation Public Co (EDL-Gen).
DSPC operates the Don Sahong Hydropower plant in Laos.
EDL-Gen’s principal activity is generating and selling electricity, investing in power generation assets and providing operation and maintenance services to power generation assets.
“The proposed acquisition will enable Mega First to increase its shareholding in a proven and profitable renewable energy asset,” the filing said.
On completion of the acquisition, its effective interest in DSPC will be increased to 91.25% from 80%. The proposed acquisition is expected to be completed by Dec 31, 2023.
For its second quarter ended June 30, 2023, Mega First Corp reported a lower net profit of RM88.61mil, compared with RM100.84mil in the previous corresponding period. Revenue during the quarter stood at RM325.65mil compared with RM331.87mil previously.
Basic earnings per share stood at 9.38 sen versus 10.67 sen previously. — Bernama