KUALA LUMPUR: Zecon Bhd
's wholly owned subsidiary Zecon Renewables (Sarawak) Sdn Bhd (ZRSSB) has proposed subleasing a portion of land in Kuching, Sarawak from Zecon Solar Sdn Bhd (ZSSB) in a related party transaction for RM54.36 million.
In a Bursa Malaysia filing, Zecon said the proposal entails subleasing 122.18 hectares (302 acres) for 30 years at a monthly rental rate of RM500 per acre. This translates to RM151,000 a month, and RM1.81 million annually.
The land forms part of Kota Petra Green Technology Park in Kuching. It has been approved for a 100 megawatt alternating current (MWac) solar photovoltaic farm development, the filing said.
The proposal forms part of a power purchase agreement entered into by ZRSSB with Syarikat SESCO Bhd on Oct 22, 2025. ZRSSB will design, construct, own, operate and maintain the solar PV facility and supply the electricity generated to SESCO, Zecon said.
"The proposed sublease is undertaken as part of the group’s plan for its renewable energy division to undertake the development of the facility.
"The proposal will provide the group with long-term access to a strategically located site suitable for the development of the facility, which is expected to contribute positively to the group’s future earnings," it said.
Meanwhile, Zecon has also proposed to establish and implement an employees’ share option scheme (ESOS), with the maximum number of new shares to be issued and allotted capped at 15 per cent of the company’s total issued shares.
"An application will be made to Bursa Securities for the listing of and quotation for the new Zecon shares to be issued pursuant to the exercise of the ESOS options on the Main Market of Bursa Securities," it said.
The proceeds from the exercise will be used for the group’s working capital.
Barring unforeseen circumstances and subject to all approvals being obtained, both proposals are expected to be completed by the fourth quarter of 2026. - Bernama
