KUALA LUMPUR: OCK Group Bhd has entered into a conditional investment agreement with Zelestra Corporacion SAU (Zelestra) and Solarpack Asia Sdn Bhd (SPK Asia), marking its entry into a 116 megawatt (MW) operational solar photovoltaic plant located in Sungai Petani, Kedah.
In a Bursa Malaysia filing, OCK said the proposed investment, with an indicative enterprise value of RM350 million subject to adjustments, involves acquiring a stake in SPK Asia, which owns 49 per cent of Solarpack Suria Sungai Petani Sdn Bhd (3SP). JKH Renewables Sdn Bhd holds the remaining 51 per cent of 3SP.
The solar project, developed under Malaysia's Large-Scale Solar Programme (LSS3), represents a strategic expansion for OCK into the renewable energy sector.
OCK will also assume a loan previously granted by Zelestra to JKH Renewables as part of the agreement.
"The proposed investment will increase the total solar generation assets managed by OCK."
"This expansion is expected to yield substantial benefits, including enhanced revenue and profitability generation. By expanding the capacity of its solar generation assets, the Group will be well-positioned to potentially capitalise on future opportunities, such as participating in the future LSS programmes initiated by the government," it said.
Furthermore, OCK said the revenue from 3SP Solar Project is fully secured under a 21-year Power Purchase Agreement (PPA) with TNB until March 2043.
"The proposed investment may be able to contribute to the growth and prospect of an enlarged OCK Group moving forward," it added.