KUALA LUMPUR (Aug 3): Renewable energy player Sunview Group Bhd has aborted plans to venture into the biogas renewable energy industry after it terminated the proposed acquisition of Provectus Bioenergy Sdn Bhd.

Provectus Bioenergy is engaged in the operation of generation facilities that produce electric energy.

In a bourse filing on Thursday (Aug 3), Sunview said the termination was due to the parties' inability to reach a consensus on the terms of the share sale agreement (SSA) for the entire shareholding in Provectus Bioenergy.

"As a result, the parties have decided that it is in the best interest to mutually terminate the proposed acquisition and SSA," it added.

Sunview said its indirect wholly-owned subsidiary Suntech Energy Sdn Bhd, together with the purchasers namely Warrants RE Assets Sdn Bhd, Intechcity Construction Sdn Bhd and Pasir Lembayung Sdn Bhd, had entered into a deed of mutual termination with the vendors, Ee Hood Liang and Wong Pak Wei for the termination.

It added that the termination will not have any material effect on the group's share capital and substantial shareholder’s shareholdings, net assets per share, gearing and earnings per share for the financial year ending March 31, 2024.

Under the earlier deal, Sunview was to own 20% in Provectus Bioenergy while Suntech Energy, Warrants RE Assets, Intechcity Construction and Pasir Lembayung were to own the remaining 80% post-acquisition.

The acquisition would have been Sunview's first venture into the biogas renewable energy industry and serve as its launchpad to many more biogas renewable energy projects to come.

Sunview shares closed unchanged at 85 sen on Thursday, giving it a market capitalisation of RM397.8 million.