KUALA LUMPUR (Sept 12): Utilities engineering services firm MN Holdings Bhd (KL:MNHLDG) has signed a pact with Reservoir Link Energy Bhd (KL:RL) to explore potential business opportunities in the renewable energy sector.

Under the memorandum of understanding (MOU) signed between MN Holdings’ unit MN Power Transmission Sdn Bhd and Founder Energy Sdn Bhd, a 51%-owned subsidiary of Reservoir Link, both parties will work together to secure and execute projects related to solar, biogas, and biomass.

The parties will work together including exchanging information, proposing and implementing specific actions, and periodically evaluating the effectiveness of the collaboration, MN Holdings said in a filing with Bursa Malaysia.

“The parties will cooperate with each other using internal resources to source and secure potential projects, if project secured, to analyse and study requirements of tender documents and the preparation of business plan and any proposals,” MN Holdings said.

The MOU is valid for two years starting from Sept 12, 2024, with an option for extension by mutual written agreement. The companies aim to secure projects across Malaysia, with plans to expand into other Asean countries.

Just last month, MN Holdings and Reservoir Link (through Founder Energy) formed a joint venture, with a 20% and 80% stake respectively, to submit a tender for a project with Tenaga Nasional Bhd (KL:TENAGA).

However, details on the energy generation capacity of the project were not disclosed at the time.

Founder Energy is mainly involved in providing turnkey engineering, procurement, construction, and commissioning services for solar photovoltaic facilities. Founder Energy also supplies and installs solar systems, as well as related civil, structural, mechanical, and electrical engineering works.

As of Thursday’s noon market break, shares of MN Holdings were up 1.5 sen or 1.76% at 86.5 sen, giving the company a market capitalisation of RM415.58 million. Year-to-date, its share price has risen by 57.27%.

Meanwhile, Reservoir Link’s shares remained unchanged at 29 sen, with a market value of RM96.7 million. The stock has declined by 6.45% year-to-date.