The sale of the stake in PLB Green Solar Sdn Bhd — held through PLB’s 85.71%-owned subsidiary PLB Terang Sdn Bhd — is expected to generate a profit of RM10.76 million for PLB, according to the company’s filing with Bursa Malaysia on Tuesday.
KUALA LUMPUR (Oct 15): Construction and property company PLB Engineering Bhd (KL:PLB) has proposed to sell its 60% stake in a solar energy firm for RM19.8 million cash to help repay its bank borrowings.
The sale of the stake in PLB Green Solar Sdn Bhd — held through PLB’s 85.71%-owned subsidiary PLB Terang Sdn Bhd — is expected to generate a profit of RM10.76 million for PLB, according to the company’s filing with Bursa Malaysia on Tuesday.
PLB said the purchaser of the 60% stake, Koperasi Sahabat Amanah Ikhtiar Malaysia Bhd, is also buying the other 40% stake in PLB Green Solar from waste management and renewable energy firm Greenviro Solutions Sdn Bhd for RM13.2 million.
PLB said that the proposed disposal marks the group’s exit from the solar energy services business, allowing it to realign its strategies and concentrate on its core focus of property development.
“It is also part of PLB’s strategy to unlock the value and monetise its non-core assets where the proceeds raised from the proposed disposal will be utilised by PLB Group to repay bank borrowings which will reduce the group’s gearing level and improve the group’s financial position with the enhancement of its current ratio and improve the cash flow of the group following lower interest expenses,” it added.
For the financial year of 2023, PLB Green Solar’s profit after tax decreased 5.26% from the previous year to RM840,000 mainly due to an increase in term loan interest rate. Revenue was up 2.76% to RM13.53 million amid favourable weather conditions and consistent site maintenance.
As of the end of May, PLB’s cash and bank balances stood at RM6.6 million, while fixed deposits with licensed banks totalled RM4.4 million. The group’s total borrowings amounted to RM173.1 million, comprising RM64.61 million in short-term loans and RM108.49 million in long-term loans. PLB’s accumulated loss stood at RM16.7 million.
Shares of PLB gained six sen or 5.41% to close at RM1.17 on Tuesday, giving the company a market capitalisation of RM124.8 million.
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Source: EdgeProp.my
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