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KUALA LUMPUR (Jan 12): JAKS Resources Bhd (KL:JAKS) has agreed to sell its 100% stake in JAKS Solar Nibong Tebal (JSNT) to Sunview Group Bhd (KL:SUNVIEW) unit, Sunview Asset Management Sdn Bhd, for RM15 million in cash plus up to RM40 million owed by JSNT.
According to filings with Bursa Malaysia, JSNT was set up to develop a 50 megawatt (MW) large-scale solar plant in Seberang Perai Selatan, Penang, which began commercial operations on Aug 18, 2023. The solar plant sells electricity to Tenaga Nasional Bhd (KL:TENAGA) under a long-term power purchase agreement, now extended to 25 years until Aug 18, 2048, under the Large Scale Solar 4 programme.
Sunview in a separate filing with the bourse said the proposed acquisition will support the group's expansion in solar power by adding a 50MW solar plant with a 25-year concession.
It said JSNT operates renewable energy facilities, making it a good fit with Sunview’s existing solar engineering, procurement, construction and commissioning and power generation business. By acquiring JSNT, Sunview said it can combine both companies’ expertise to efficiently manage the asset and continue its operations, with the necessary regulatory approvals.
The acquisition will also provide stable, recurring income through JSNT’s long-term power purchase agreement with TNB. After completion, JSNT will become a wholly owned subsidiary, allowing Sunview to fully record its profits from FY2026.
The purchase will be funded through Sunview’s internal funds and/or future fund-raising, with the final mix to be decided later based on its debt levels, cash needs, and another planned solar acquisition. As of Sept 30, 2025, Sunview had about RM55.1 million in cash, up from RM49.2 million in March 2024.
JSNT posted a net profit of RM817,000 against RM18.8 million revenue for the financial year ended Dec 31, 2024.
In a filing with Bursa Malaysia, JAKS Resources said the sale won’t make it a cash company or an affected listed issuer under Bursa Malaysia rules.
Following the sale, JAKS Resources’ power and energy division will consist of its joint venture with China Power Engineering Consulting Group Co Ltd to build the US$1.87 billion (RM7.61 billion) Hai Duong Thermal power plant in Vietnam and its partnership with CALB Group to develop battery energy storage projects in Southeast Asia. This includes a joint venture to produce and integrate battery modules for renewable energy and grid stability.
The company is also in construction and property investment.
JAKS Resources said in its filing that the sale will unlock JSNT’s value, reduce its borrowings, save on interest and improve its cash flow and financial position.
It plans to use RM14.7 million of the proceeds to reduce loans, saving around RM800,000 in interest per year.
The deal is expected to give JAKS a net gain of RM6.84 million.
JAKS Resources reported a 19% higher net profit of RM51.8 million for the nine months ended Sept 30, 2025, from a year ago, on the strength of its JAKS Hai Doung Vietnam joint venture. This was on almost 26% lower revenue of RM30.8 million for the period.
As of Sept 30, 2025, JAKS Resources had RM80 million in short-term loans, RM374 million in long-term loans, and RM36.49 million in cash and bank balances.
JAKS Resources’ shares closed half a sen lower at 10 sen, valuing the company at RM263.23 million.
Sunview also closed unchanged at 37.5 sen a share, valuing the company at RM212.9 million.
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