HONG KONG, Aug 29, 2019 – (ACN Newswire) – BGMC International Limited (“BGMC” or the “Company”, together with its subsidiaries, “BGMC Group” or the “Group”) (HKEX: 1693), a Malaysia-based company with subsidiaries that are mainly engaged in providing construction services and in the concession and maintenance business, has announced today that its indirect wholly-owned subsidiary, BGMC Energy Sdn. Bhd., has entered into a shareholders’ agreement with other parties in connection with the joint venture arrangement for purpose of regulating their rights and obligations in a joint venture company, Sparks Energy International Limited (the “JV Company”).
The JV Company, via its subsidiaries, were to conduct the business of providing comprehensive management services in relation to development, financing, construction, operating and maintenance of renewable energy power plants, including two power plants in its pipeline with a maximum export capacity of 30 megawatt alternating current (MWa.c.) each, which are currently under development in Malaysia. The JV Company also intends to capture future potential opportunities for developing and operating other solar concession projects in Malaysia and in the ASEAN region.
The first power plant is located at Kuala Muda, in the state of Kedah, and is owned by the Company’s indirect non-wholly owned subsidiary, BGMC BRAS Power Sdn. Bhd., where the peak installed capacity of the photovoltaic (“PV”) modules shall be not less than 45.00 megawatt peak (“MWp”) and the maximum annual allowable quantity (“MAAQ”) shall be capped at 68,605.32 megawatt hour (“MWh”). The second power plant is located at Machang, in the state of Kelantan, where the peak installed capacity of the PV modules shall be not less than 45.00 MWp and the MAAQ shall be capped at 82,929.10 MWh.
The JV Company’s shareholders have made a nominal initial capital contribution of HK$10 to the JV Company and under the shareholders’ agreement, a further investment of approximately RM177.0 million (equivalent to approximately HK$331.1 million) is to be injected by all JV shareholders through the subscription of the JV Company’s shares and other agreed forms of equity financing, according to the respective equity proportion in the JV Company. BGMC is to hold 45.1% stake in the JV Company.
Tan Sri Barry Goh, Chairman and Executive Director of BGMC, said, “We have considered the potential for development of the solar industry in Malaysia where the government intends to replace existing national power plants with those using renewable energy, notably solar power plants. The government aims to increase the contribution of solar power to 20% of the total power generated in the nation by 2030. These factors, along with rising concern over the sustainable renewable energy and a stabilized tariff, and the prospects offered to management services companies in relevant industries, lead us to view the JV Company as a valuable investment opportunity and an organic platform for our existing business, specifically, for our Concession and Maintenance sector, which will see a new source of recurring income regularly flowing into the Group for the next 21 years. The JV Company also enables us to participate in the development and operation of other solar concession projects in Malaysia and the ASEAN region in the long run. By engaging in the renewable energy business, BGMC is advancing in a strategic direction aligned with the government’s policy and global trends.
I am also delighted to collaborate with other shareholders of the JV Company, namely DPI Solar 1 Pte. Ltd., AD Solar Pte. Ltd., Hasilwan Solar Sdn. Bhd., BV Energy Sdn. Bhd., and IDIQA Energy Sdn. Bhd. All of our partners are leaders in their respective solar and/or power transmission industries in Malaysia, Japan and Singapore. The JV Company will enable us to combine our technical expertise, skills and experience to generate synergies and achieve economies of scale, while providing a comprehensive range of management services and support services in connection with the construction, management, operation and maintenance of solar power plant projects. BGMC will continue to identify projects with promising potential, so as to enhance its profit position and investment portfolio, and, ultimately, raise long-term value for shareholders.”
About BGMC International Limited and the Group
Founded in 1996, BGMC Group is based in Malaysia with its subsidiaries mainly involved in providing construction services and engaged in the concession and maintenance business. With an operating history of over 20 years, it provides a wide range of construction services to customers. Armed with experience and expertise in construction services, the Group is capable of undertaking public private partnership (PPP) projects based on the Build, Lease, Maintain and Transfer (BLMT) and Build, Own and Operate (BOO) models that can generate long-term recurring cash flow.
Information about the Other JV Shareholders
DPI Solar 1 Pte. Ltd., incorporated in Singapore and through its associates in Japan, possesses extensive experiences as a project developer of large-scale solar power plant projects, with professional knowledge and technical expertise including origination, design, commercial and financial planning, developing and operating of such projects.
AD Solar Pte. Ltd., incorporated in Singapore, is a wholly-owned subsidiary of Asahi Dengyo E. C. Co. Ltd. (“AD”). AD, incorporated in Japan, is principally engaged in the business of solar project development, investment, construction and installation works, commissioning, and operation and maintenance. AD had been involved in large-scale solar power plant projects as a construction contractor as well as a maintenance contractor.
Hasilwan Solar Sdn. Bhd., incorporated in Malaysia, is a subsidiary of Hasilwan (M) Sdn. Bhd., which is principally engaged in the business of supply and installation of a variety of power electrical equipment and a provider of power engineering solutions.
BV Energy Sdn. Bhd., incorporated in Malaysia, is a wholly-owned subsidiary of BRAS Ventures Bhd., which is principally engaged in the business of civil and building construction, mechanical and electrical services, and power transmission and distribution.
IDIQA Energy Sdn. Bhd., incorporated in Malaysia, is a wholly-owned subsidiary of IDIQA Holding Sdn. Bhd., which is principally engaged in the business of civil and building construction, mechanical and electrical services, and power transmission and distribution in both the private and governmental sectors.
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