Serba Dinamik unit buys 49% stake in OHP Ventures

Purchase takes into consideration earnings potential of the firm

PETALING JAYA: Serba Dinamik Holdings Bhd’s wholly owned subsidiary, Serba Dinamik International Ltd (SDIL), has entered into a share sale and purchase agreement to acquire a 49% equity interest in OHP Ventures Incorporated (OHP Ventures) for US$800,000 (RM3.33mil) from OHP Ventures Sdn Bhd (OHPVSB).

OHPVSB owns the entire issued and paidup share capital of OHP Ventures.

OHP Ventures has entered into a joint development agreement with Thavone Athsamouth on Jan 9, 2018 for the development, financing, construction, commissioning and operation and maintenance of two mini hydro installations/projects with an aggregate capacity of 30MW in the district of Houaphan, Laos.

The project commenced in July 2018 and would be completed by January 2022.

Upon completion of the proposed acquisition, OHP Ventures would become a 49%owned associate company of SDIL.

Serba Dinamik said the purchase consideration was arrived at on a “willing buyer-willing seller” basis after taking into consideration, among others, the future earnings potential of OHP Ventures arising from the project.

It pointed out that the purchase consideration would be satisfied entirely in cash, which would be financed through the pro- ceeds from the initial public offering of the company.

Meanwhile, OHP Ventures owns 70% of the issued and paid-up shares in Nam Taep 1.2.3 Hydropower Company Ltd (NT), a company incorporated in Laos.

NT is the holder of the two concessions for the project.

NT had entered into two power purchase agreements (PPAs) with Électricité du Laos, both dated Dec 8, 2017, for the sale and purchase of the net electrical output generated from 3x5MW Nam Taep 1 and 3x5MW Nam Taep 2 hydropower energy-generating facility, respectively, to be constructed at Ban Nam Taep and Ban Nameuang in Xam Tai District, Houaphan Province, Laos.

On the rationale for this acquisition, Serba Dinamik said the proposed acquisition was part of the company’s strategy to expand its business into an asset-ownership model, as well as to expand its engineering, procurement, construction and commissioning (EPCC) business segment and capabilities.

“To date, NT has awarded one EPCC contract to SDIL for the project at a contract value of approximately US$66.2mil (RM275.2mil).

“In addition, as a shareholder of OHP Ventures, SDIL may also reap benefits from the project as a whole in the form of dividends (if any) and track record, being its first foray into Laos,” it said.

It added that SDIL would also be in a good position to offer its expertise in the operation and maintenance of the hydropower plants upon completion of the EPCC works under the project.

Moving forward, the proposed acquisition is expected to enhance Serba Dinamik’s financial position and profitability.

The proposed acquisition is expected to be completed by the fourth quarter of 2018, the company said in the statement.

As a shareholder of OHP Ventures, SDIL may also reap benefits from the project as a whole in the form of dividends (if any) and track record, being its first foray into Laos. Serba Dinamik Holdings Bhd