GUH Utilities to dispose of 60% of RE unit for RM9.14m

PETALING JAYA: GUH Holdings Bhd’s wholly owned subsidiary GUH Utilities Holdings Sdn Bhd has entered into a share sale agreement with Hng Capital Sdn Bhd to dispose of 60% in GUH Renewable Energy Sdn Bhd for RM9.14 million cash.

In a Bursa filing, the group said upon completion of the proposed disposal, GUH Renewable Energy would become a 40%-owned associate company of GUH Holdings.

In addition to the share sale, GUH Utilities entered into a shareholders agreement involving GUH Holdings, Hng Capital and GUH Renewable Energy to facilitate the management and operations of GUH Renewable

Energy and outline the shareholders’ rights and obligations.

It also entered into a financial assistance agreement between Hng Capital and GUH Renewable Energy to proportionately reimburse whatever expenses incurred by GUH Renewable Energy to be borne by the Hng Capital.

GUH Holdings said the disposal will allow it to collaborate with Hng Capital and to enter into a joint venture to undertake potential power generation projects/opportunities in Taiwan.

“The projects shall be large-scale floating/ground, rooftop project with a certain degree of complexity solar projects and the collaboration will enhance GUH Holdings’ status in future similar solar projects.

“Hng Capital will provide comprehensive know-how on the structuring of power generation projects and construction optimization and, not least, is also able to enhance GUH Holdings’ equity and nonrecourse financing.”