KUALA LUMPUR (July 25): Kinergy Advancement Bhd (KAB) — formerly known as Kejuruteraan Asastera Bhd — has acquired the entire stake of Matahari Suria Sdn Bhd (MSSB) for a purchase consideration of RM5.3 million.

In a statement, the energy and engineering solutions provider said its wholly-owned subsidiary KAB Energy Holdings Sdn Bhd (KABEH) completed the acquisition on Tuesday (July 25) as part of the group's plan to expand its sustainable energy solutions (SES) segment's portfolio.

MSSB owns a solar photovoltaic (PV) system on the rooftop of Universiti Teknologi Malaysia Kuala Lumpur and has an ongoing renewable energy power purchase agreement to supply energy to Tenaga Nasional Bhd (TNB) under a feed-in tariff concession until 2037.

KAB executive deputy chairman cum group managing director Datuk Lai Keng Onn said that the acquisition is anticipated to contribute positively to KAB’s financial performance up to 2037.

"By completing the acquisition of MSSB, we have further expanded our solar PV portfolio in line with the growth strategy of our SES segment.

“With the government's ambitious target of increasing the renewable energy (RE) capacity by 70% by 2050, it is an indication that there is significant potential for expansion in the SES segment," he said.

Moving forward, Lai said that KAB will identify more opportunities in solar PV and other renewable sources to accelerate the growth of its SES segment and enhance the group's long-term earnings profile.

Shares of KAB closed half a sen or 1.49% higher at 34 sen on Tuesday, giving it a market capitalisation of RM614.72 million.

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Kejuruteraan Asastera now known as Kinergy Advancement