PETALING JAYA: Genetec Technology Bhd
has inked a deal to dispose of its entire 50% equity interest in its joint venture (JV) with Citaglobal Bhd to Citaglobal New Energy Sdn Bhd for a nominal RM1.
The disposal involves 250,000 ordinary shares in Citaglobal Genetec BESS Sdn Bhd (CG BESS), representing Genetec's entire stake in the JV firm, which was established in January 2023 as a 50:50 JV between Genetec and Citaglobal.
As part of the transaction, Genetec will also transfer its rights to an intercompany balance of RM2.24mil owed by CG BESS to Citaglobal NE for no additional consideration.
CG BESS, which is principally involved in the manufacture of electricity distribution and control apparatus, batteries and accumulators, has been loss-making since commencing operations in 2023.
It recorded an unaudited net loss of RM51,912 and net liabilities of RM4.35mil as at June 30, 2026.
Genetec said the RM1 consideration took into account CG BESS's financial position and business prospects, as well as the full impairment of its investment in the JV and the intercompany balance.
The transaction will enable Genetec to exit the investment and disengage from the JV, with both parties citing distinct business objectives and strategic priorities.
Completion is conditional upon the necessary approvals and the novation of relevant project contracts from CG BESS to Genetec, to the satisfaction of the relevant parties.
Upon completion, the parties' collaboration agreement dated Oct 6, 2022, will be terminated, and Genetec will cease to have any equity interest in CG BESS or rights to the intercompany balance.
The transaction is expected to be completed by the fourth quarter of 2026.
It is not expected to have any material effect on Genetec's earnings, net assets or gearing for the financial year ending June 30, 2027.
