BM Greentech formalises conditional SAA to acquire Plus Xnergy for RM110mil

KUALA LUMPUR: Biomass boiler company BM Greentech Bhd (BMG) and solar firm Plus Xnergy Holdings Sdn Bhd (PXH) have formalised a conditional share acquisition agreement (SAA) to fulfil the term sheet requirements in BM Greentech’s RM110 million acquisition of Plus Xnergy Holdings.

In a filing with Bursa Malaysia today, BMG said the acquisition of RM110 million encompasses 66.6 million ordinary shares representing 100 per cent equity interest in PXH.

The acquisition is to be satisfied via an issuance and allotment of 81.48 million new BMG shares at an issue price of RM1.35 per share.

"It also demonstrates the group’s long-term commitment to its vision to be the regional partner of choice for innovative and cost-effective green energy and water solutions,” it said.

BMG group managing director Chia Lik Khai said PXH’s clean energy ecosystem comprising generation, storage, energy efficiency, electric vehicle charging solutions and smart energy systems adds breadth and depth that strengthens its value chain.

"Our combined capability positions us well to capitalise on large-scale solar projects and the growing demand for clean energy solutions to support the environmental social and governance journey of businesses and a just transition,” he said in a statement.

Meanwhile, BMG also proposed a special issuance of 90.31 million shares to QL Resources Bhd’s (QL) wholly-owned subsidiary, QL Green Resources Sdn Bhd, in conjunction with the proposed acquisition with PXH.

It said the company shall undertake the proposal at the same price as the issue price of RM1.35 sen per share to maintain QL’s shareholdings at 52.57 per cent equity interest in BMG. - Bernama