PETALING JAYA: Tex Cycle Technology (M) Bhd has entered into a new joint venture (JV) with majority ownership to expand its renewable energy (RE) generation business.
The company told the stock exchange yesterday that its wholly-owned subsidiary, Tex Cycle Sdn Bhd (TCSB), had on July 15 entered into a shareholders’ agreement with Pakar Go Green Sdn Bhd (PGG) and KLPK Niaga Sdn Bhd.
“TCSB, PGG and KLPK intend for Pakar B2E Sdn Bhd to be the JV vehicle for entering into projects relating to the development of renewable energy power plant, procurement and processing of biomass solid fuel for renewable energy generation, trading and export the by-products obtained from the process, ” it said.
TCSB will hold a 60% stake in the JV, while PGG and KLPK Niaga will own 30% and 10%, respectively.
TCSB will be responsible to provide and operate suitable technology required by the projects undertaken by the JVs.
Meanwhile, PGG will be involved in marketing and securing buyers for the by-products of the JV.
KLPK, on the other hand, will facilitate matters related to land, permits and licences.
It will also explore and secure bamboo plantations as a potential fuel source for the project in the long term, subject to feasibility study.
“The directors of Tex Cycle believe that the agreement shall bring a positive impact to the group in the future.
“The agreement will not have any material effect on the earnings, gearing and net tangible assets of the Tex Cycle group for the financial year ending Dec 31,2020.
“However, the agreement is expected to contribute positively to the future earnings of the Tex Cycle group.
“TCSB will fund its investment in the JV company through its internally generated funds of Tex Cycle group and bank borrowing, ” the company told Bursa Malaysia in a filing.
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