CEO Morning Brief

Citaglobal to Make Foray Into RE With Genetec Battery Development Collaboration

Publish date: Fri, 07 Oct 2022, 08:31 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (Oct 6): Citaglobal Bhd (formerly known as WZ Satu Bhd) is entering the renewable energy (RE) industry through a battery development collaboration with Genetec Technology Bhd.

In a bourse filing, the diversified group said it has inked an exclusive collaboration agreement with Genetec to develop battery energy storage management systems to store and manage excess power during the generation of renewable energy.

It added that a definitive agreement with Genetec is to follow suit within one month or an extended period of six months, which will see the formation of a special-purpose vehicle on a 50:50 basis.

Citaglobal said the collaboration formed part of its strategic plans to transform into a conglomerate with involvement in renewable energy, facilities management, telecommunications, infrastructure and technology sectors.

The group is currently involved in civil engineering and construction, oil and gas, power generation, property development and manufacturing.

In a joint statement with Genetec, Citaglobal group executive chairman and president Tan Sri Mohamad Norza Zakaria said the collaboration would mark the group’s foray into the renewable energy industry, which he notes will be a significant growth area for the group.

“We are delighted to partner with Genetec for this project. With Genetec’s expertise in the electric vehicle and energy storage segment — underpinned by its unique blue-chip customer base — we are confident that together, we will play a major role in greening Malaysia.

“Battery energy storage is just one of the renewable energy segments we are looking into,” he added.

Meanwhile, Genetec founder and managing director Chin Kem Weng said energy storage is significant to its business, and looks forward to the potential collaboration with Citaglobal on a project that will play a part in developing the nation’s renewable energy infrastructure.

Shares in Citaglobal ended one sen or 3.77% higher at 27.5 sen, giving the group a market capitalisation of RM293.61 million. Genetec closed down five sen or 2.18% at RM2.24, valuing it at RM1.53 billion.

Source: TheEdge - 7 Oct 2022

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