BM Greentech Berhad has annnouced that it will be acquiring a 100% equity interest in Plus Xnergy Holding Sdn Bhd for an estimated RM110 million to expand its position in the clean energy sector
Plus Xnergy is one of the leaders in clean energy solutions for commercial, industrial, residential and large-scale solar (LSS) projects including solar farms, and has a strong presence in Malaysia with nationwide footprint. Founded in 2013, Plus Xnergy has built a strong reputation with over 400 MWp of installed solar PV capacity which generated 2,000 GWh clean energy as of March 2024. Their focus on energy generation, efficiency, storage, and electric vehicle charging complements BM Greentech’s existing bioenergy, water treatment, and solar energy solutions.
The company said by integrating Plus Xnergy’s innovative solutions and wide customer base will strengthens its position as a comprehensive clean energy solutions leader, offering a wider range of services. This strategic acquisition merges the expertise and resources of both companies, positioning itself for significant business growth and propelling it towards its vision of being the region’s preferred partner for clean energy and water solutions.
The company said the total purchase consideration of RM110 million will be settled through the issuance of 81,481,482
new BM Greentech shares at an issue price of RM1.35 per share based on the 3-month volume weighted average market price of BM Greentech shares up to and including the last trading day immediately prior to the date of the signing of the Term Sheet.
The completion of the acquisition is however subject to the execution of definitive agreements and receipt of necessary shareholder approvals. A conditional share sale agreement (SSA) finalising the terms will be signed within 30 days of the Term Sheet.
BM Greentech will concurrently undertake a special issuance of new shares at the same price as the issue price of RM1.35 to its parent company, QL Green Resources Sdn Bhd, a subsidiary of QL Resources Berhad (“QL”) to maintain QL’s majority ownership after the acquisition. The proceeds raised from this special proposed special issuance will be used for BM Greentech’s business expansion into the clean energy sector. BM Greentech will inject additional equity funding of up to
RM50 million to power Plus Xnergy”s business growth and expansion.
The company said it is confident that this acquisition will create further value for its shareholders.
