Reservoir Link Energy Bhd, an energy related services provider, announced that its wholly-owned subsidiary Reservoir Link Renewable Sdn Bhd has entered into a share sale agreement for the proposed acquisition of SAG Renewables Sdn Bhd (SAGR) from SAG Green Tech Sdn Bhd.
Reservoir Link will acquire the entire equity stake in SAGR for a purchase consideration of RM10.5 million, comprising RM4.5 million for the Sale Shares and RM6.0 million for the corporate guarantee to be provided upon the successful transfer of the Sale Shares. The proposed acquisition will be funded through a combination of internally generated funds and bank borrowings.
The acquisition, upon completion, will provide Reservoir Link with an additional stream of recurring income and better earnings visibility following the diversification into renewable energy asset ownership. The acquisition of SAGR will increase Reservoir Link’s renewable energy asset portfolio by an additional 13 solar photovoltaic assets.
Reservoir Link Executive Deputy Chairman Thien Chiet Chai said, “Following the nation’s agenda outlined in the National Energy Transition Roadmap, we have established an internal target for ourselves to strive and achieve 100 MWp in renewable energy assets by the year 2025. To date, we have a total of 33.31 MWp under our wings. We believe we are on the right track and will continue to actively explore other opportunities to further grow the renewable energy space beyond just solar energy to keep up with the demand for this segment given the accelerated growth and adoption.”