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vision_engage | Joined since 2019-06-18

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2020-03-25 14:13 | Report Abuse

Kuala Lumpur, Wednesday, 25 March 2020 – Kejuruteraan Asastera Berhad (“KAB” or “the Group”)
has entered into a heads of agreement with Invest Energy Sdn Bhd to acquire 80% ownership in two companies, for a total consideration of RM7.26 million.

Konpro Industries Sdn. Bhd. is the holding company of a 2 MW waste heat recovery facility located in Siliau, while Meru One Sdn. Bhd. is the holding company of a 2 MW cogeneration facility located in Kapar. These acquisitions will increase the Group’s portfolio of carbon efficient energy generation assets to a total of 5.5MW.

Cogeneration (also known as combined heat and power) is the sequential production of power and
the recovery of heat from a single primary fuel source. Meanwhile, waste heat recovery plants recover waste heat from a facility’s existing processes to generate electricity. These plants have applications in many industries and are widely used in developed countries due to their energy efficient nature. Both plants, constructed under a build, operate and transfer contract, are currently operational and are already generating revenue. Over the course of the maximum 10-year concessional period, these plants are projected to contribute a total of RM104 million revenue from the generation of an estimated 284,680 MWh of electricity. As with the previous acquisition, these projects, with higher gross margins and recurring income streams, are expected to increase the Group’s overall profitability and earnings visibility.

Echoing the previous announcements, Dato’ Lai Keng Onn believes that the Group’s strategic move into more carbon efficient and sustainable energy generation solves the national and global need for cleaner energy sources. This is especially so for waste heat recovery plants, where energy that is normally wasted and radiated into the atmosphere is captured and used again to power the facilities.

Dato’ Lai reiterates, “We believe that many industrial companies, like metal smelters and food
producers, with high energy requirements will be able to benefit from waste heat recovery projects
and cogeneration arrangements. There is tremendous market potential for us to move ahead in this
space. The group will benefit from recurring and profitable income sources, while also doing our small part to help fight climate change”

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2020-03-20 11:52 | Report Abuse

KAB's earnings will not be impacted by the termination of the Heads of Agreement as it was just a proposal for acquisition.

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2019-08-19 11:58 | Report Abuse

Company Announcement: KAB (0193) will be releasing its 2Q results tomorrow (20th August 2019)

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