Citaglobal Bhd is reinforcing its commitment to the renewable energy sector by acquiring a 60% stake in registered solar photovoltaic provider Spectra Suria Sdn Bhd for RM2 million in cash and a 40% stake in registered solar photovoltaic investor company Nova Reeco Sdn Bhd for RM3 million in cash.
Both Spectra Suria and Nova Reeco have secured projects from diverse government departments and quasi-government agencies. These acquisitions come with a collective order book value of RM268 million, propelling Citaglobal’s overall order book to exceed RM1.27 billion.
Together with the 40% stake in Nova Reeco, Citaglobal intends to acquire irredeemable convertible preference shares (ICPS) in the company, convertible into an additional 20% equity interest in Nova Reeco. Additionally, Citaglobal plans further investments of at least RM7 million, enhancing its stake in Nova Reeco and bringing the total investment in both entities to RM12 million.
The acquisition signing ceremony for Citaglobal’s stake in Nova Reeco was held recently, and key documents were signed by Aimi Aizal Bin Nasharuddin, Executive Director of Citaglobal’s New Energy division, and Nova Reeco’s Executive Directors, Nik Ahmad Huznee Nik Hussain and Nik Mohd Umar Nik Ahmad Huznee.
Likewise, key documents related to the Spectra Suria deal were signed by Azly Bin Abdul Kadir, Chief Executive Officer of Citaglobal Engineering Services Sdn Bhd, and Spectra Suria Executive Directors, Nik Fadhlee Nik Ahmad Huznee and Nik Mohd Umar Nik Ahmad Huznee.
The acquisitions align with the government’s National Energy Transition Roadmap and Citaglobal’s strategic expansion plan in the renewable energy sector.
The deal for Spectra Suria was sealed with Nik Ahmad Huznee Nik Hussain and Nik Mohd Umar Nik Ahmad Huznee as the vendors. Meanwhile, for the Nova Reeco acquisition, the vendors are Nik Ahmad Huznee, Nik Fadhlee Nik Ahmad Huznee, and Nova Spectra Energy Sdn Bhd.
Tan Sri (Dr.) Mohamad Norza Zakaria, Citaglobal’s Executive Chairman and President, expressed contentment with the acquisitions, underlining the company’s dedication to renewable energy and its objective of contributing to Malaysia’s net-zero emissions goal by 2050. The acquisitions, along with their diverse energy solutions, signal Citaglobal’s determination to make its mark in the renewable energy industry while fostering earnings and future growth.
Both acquisitions are contingent on certain terms, including Spectra Suria’s appointment as the engineering, procurement, construction, and commissioning (EPCC) contractor for the Lembaga Kemajuan Ikan Malaysia (LKIM) project.
Spectra Suria specializes in EPCC works for solar photovoltaic and energy storage systems, while Nova Reeco is engaged in event management, design activities, and wholesale trade.
The Proposed Acquisition of Spectra Suria is anticipated to conclude within 30 days, and the Proposed Acquisition of Nova Reeco is expected to be finalized within 2 months. Upon completion, both acquisitions are poised to positively contribute to Citaglobal’s future earnings.
Citaglobal Bhd, established on January 2, 2008, is a diversified group engaged in various sectors, including civil engineering and construction, telecommunications, oil and gas, power generation, property development, manufacturing, and renewable energy. The company is dedicated to emerging as a key player in technology-driven industries to pave the way for the future.
For its development business, the company focuses on construction, property development, and property investment.