KUALA LUMPUR: Main Market listed Jentayu Sustainables Bhd has received key approval with conditions from the Securities Commission Malaysia (SC) regarding the acquisition of Telekosang Hydro and Jentayu Solar assets, which is a major milestone towards the group transforming into a renewable energy player.
The company said in a filing with Bursa Malaysia today that its application to the SC regarding the proposed acquisition of hydro assets, junior bonds, and a solar asset has been approved under Section 214(1) of the Capital Markets and Services Act 2007, subject to certain terms and conditions.
The approval with conditions by the SC paves the way for the group to secure shareholder’s approval via an extraordinary general meeting.
"The proposed acquisition of hydro assets will give Jentayu Sustainables control over the two run-of-river hydropower plants with a joint capacity of 40 MW which are currently being operated by Telekosang Hydro One Sdn Bhd and Telekosang Hydro Two Sdn Bhd in Tenom, Sabah,” it said.
Upon completion, these acquisitions will significantly bolster the company's financial position, completing its turnaround process and setting it on a firm path toward profitability.
Meanwhile, the company disclosed that it has received an initial letter of notification (ILON) from the Energy Commission of Sabah for Project Oriole, which is currently under approval.
Securing this ILON marks a crucial step in the overall approval process, indicating that the Sabah government has endorsed the key terms and conditions for the project.
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"The next steps will involve negotiations with the engineering, procurement, construction, and commissioning (EPCC) contractor for the design and development of Project Oriole,” it said.
It would also begin closer collaboration with its financial partners and financiers to progress towards achieving financial close for this project. - Bernama