KUALA LUMPUR (Jan 22): Jentayu Sustainables Bhd (KL:JSB) said the Securities Commission Malaysia (SC) has denied the building material and renewable energy (RE) group’s bid for an extension of time to complete its acquisition of three RE firms proposed in 2021.

Jentayu was informed of the regulator’s decision not to approve its application seeking an extension up to March 26, 2025, via a letter on Wednesday, according to the company’s bourse filing.

“The board will be convening a special board meeting to decide on next course of action accordingly,” it added.

Jentayu had proposed to acquire the three companies, which own and operate RE assets, back in September 2021, when it was then known as Ipmuda Bhd, in a move aimed at becoming a pure RE outfit.

The companies, Telekosang Hydro One Sdn Bhd and Telekosang Hydro Two Sdn Bhd own and operate the 40MW Telekosang Hydro power plant project in Sabah, while Jentayu Solar Sdn Bhd owns and operates a 5.99MW solar power plant in Pokok Sena, Kedah.

The acquisitions are deemed related-party transactions as the companies are owned by Jentayu executive chairman Datuk Beroz Nikmal Mirdin and his wife, Datin Nurhaida Abu Sahid.

Nurhaida is the daughter of Maju Group executive chairman and former major shareholder of Jentayu Tan Sri Abu Sahid Mohamed.

The equity purchases were to be undertaken via cash and share deals and carried considerations of RM11.11 million for the entire equity of Jentayu Solar and RM139.53 million for Telekosang Hydro One and Telekosang Hydro Two.

In March last year, Jentayu said it received conditional approval from the SC to proceed with the acquisitions.

The SC’s conditions included Jentayu Capital and Telekosang One meeting a minimum finance service reserve account balance of RM32.2 million by May 6, 2024 in relation to a senior sukuk programme, the Energy Commission’s approval on the shareholding changes, and Jentayu allocating 12.5% of its enlarged share base to Ministry of Investment, Trade and Industry-approved bumiputera investors within one year after registering net profit or three years after the proposed acquisition’s completion.

Neither Jentayu’s bourse filing nor statement announcing the conditional approval disclosed the definitive fulfilment deadline.

However, supplementary agreements pertaining to the acquisitions extended their relevant fulfilment of conditions precedent dates to Sept 30, 2024.

Shares in Jentayu ended one sen or 2% higher at 51 sen, valuing the company at RM226.92 million.