Reneuco inks MOA to explore green energy biz in Perak

KUALA LUMPUR (May 11): Reneuco Bhd (formerly known as KPower Bhd) announced it has entered into a memorandum of agreement (MOA) with Pengurusan Murni Sdn Bhd (PMSB), a wholly-owned subsidiary of Perak Industrial Resources Sdn Bhd (PIRSB), and Aero Line Facilities & Engineering Services Sdn Bhd (ALFES) on Wednesday (May 10), to explore a collaboration into a green energy business in Perak, according to a filing to Bursa Malaysia on Thursday.

The venture includes, but is not limited to, awarding Reneuco and ALFES with a contract to supply smart solar LED lighting to PMSB and PIRSB for a smart solar project.

PIRSB is a wholly-owned subsidiary of Perbadan Kemajuan Negeri Perak, a state economic development corporation primarily based in Perak and engages principally in energy related businesses, including green energy.

Meanwhile, ALFES is primarily engaged in the construction of engineering projects.

“Through the MOA, Reneuco would be in good stead to assist the Malaysia government and state agencies to further their green energy agenda be it through project management consultancy or supply of green energy technology and products. The MOA also paves the way for Reneuco to further explore the application of smart street lighting throughout the Asean region.” it described.

Earlier on April 20, 2023, Reneuco and Citiglobal Bhd won a tender to develop an independent power producer (IPP) project for the East Coast Rail Link (ECRL) network. Both groups formalised their collaboration via a new special purpose vehicle (SPV).

The announcement stated that all parties agree to enter into a discussion to finalise the terms of conditions of the definitive agreement within a period of three months from the date of the MOA, or such extended period as to be mutually agreed between all parties.

“The MOA will not have any effect on the issued share capital as well as the substantial shareholders’ shareholdings of the company and will not have any material effect on the earnings per share, net asset per share as well as gearing for the financial year ending June 30, 2023.

The MOA is expected to contribute positively to the company’s future earnings when the Smart Solar Project has fully materialised,” it added.

Reneuco Bhd shares remained unchanged at 20.5 sen on Thursday (May 11), bringing a market capitalisation of RM114.5 million.