KUALA LUMPUR: Gunung Capital Bhd announced on Wednesday it had bought 425,000 or 85% stake in Pusaka Hijau Sdn Bhd for RM9.1mil.
In a Bursa filing, Gunung Capital said post acquisition, Pusaka Hijau would be its 85% owned subsidiary.
Pusaka Hijau, via its 60% owned subsidiary Perak Hydro Renewable Energy Corporation Sdn Bhd is involved in developing, maintaining and operating mini hydro plants.
Gunung Capital is involved in chartering out land-based transportation assets at a fixed monthly charter cost.
At 11.07am, its shares rose to a high of RM1.08. It ended the morning session at RM1.07, with 8.14 million shares done between 99.5 sen and RM1.08.
From Sun Daily: PETALING JAYA (Aug 22, 2013): Gunung Capital Bhd is looking to expand into the renewable energy business in Perak through a proposed acquisition of an 85% stake in loss-making Pusaka Hijau Sdn Bhd, which holds the rights to develop small hydro plants in the state.
Pusaka Hijau, through its 60%-owned subsidiary Perak Hydro Renewable Energy Corp Sdn Bhd (PHREC), is involved principally in developing, maintaining and operating mini hydro plants, which is defined by the Sustainable Energy Development Authority as hydro plants up to an installed capacity of 30 megawatts (MW). The remaining 40% interest in PHREC is owned by Menteri Besar Inc.
For the financial year ended June 30, 2012, the net loss and net liabilities for Pusaka Hijau stood at RM22,757 and RM11,788 respectively.
Gunung Capital yesterday signed a share sale agreement with Pusaka Hijau managing director and shareholder Beroz Nikmal Mirdin for the proposed acquisition of 425,000 Pusaka Hijau shares, or 85% of the company's share capital, for the sum of RM9.1 million.
In exchange, Gunung Capital will issue 9.58 million shares at 95 sen per share, which represents 7.3% of the group's share capital, to Beroz Nikmal. The 95-sen issue price is at a 5.48% discount to the five-day volume-weighted average price of Gunung Capital shares as at Aug 20, 2013 of RM1.005 apiece.
In a statement yesterday, Gunung Capital said PHREC has been mandated by the Perak state government to act as the master developer and overall coordinator for the development of mini hydro plants in the state.
Last year, PHREC entered into a water rights agreement with the Perak state government, which includes the right to build, operate and own small hydro plants at 25 pre-identified sites approved by Majlis Mesyuarat Kerajaan, with an estimated total installed capacity of 176MW for 21 years commencing from the feed-in-tariff commencement date for each site.
The water rights agreement includes land usage and water usage.
On April 29, 2013, the Perak state government and PHREC entered into a supplemental agreement to extend the list of pre-identified sites by six, resulting in an additional estimated installed capacity of 116MW.
"Prior to the proposed acquisition of Pusaka Hijau, Gunung Capital, through its 70%-owned unit Gunung Hydropower Sdn Bhd, has secured two sites to develop mini-hydro plants with a total estimated installed capacity of 20MW on a build, operate and own concept.
"This was achieved via a joint venture agreement with PHREC, which is the remaining 30% shareholder of Gunung Hydropower," said Gunung Capital.
Gunung Capital executive director Iskandar Ibrahim said that based on a capital expenditure of RM10 million per megawatt, the hydrology characteristics of the individual sites, the subsequent energy yield, a relatively low annual operational expenditure, and a fixed income stream, the group is looking to meet its targeted 12-14% internal rate of return for each mini-hydro project.
Gunung Capital executive chairman and CEO Datuk Syed Abu Hussin Hafiz Syed Abdul Fasal said the long-term stable income stream derived from the mini-hydro projects will reduce the group's dependency on incomes solely from chartering land-based transportation assets and specialty vehicles.
"The initial earnings contributions from the mini-hydro sites are expected to commence at the beginning of 2016," he added.
Gunung Capital's financial results have been stellar in the last two financial years ending Dec 31, 2011 and 2012, following a corporate restructuring exercise in October 2010 involving a change of business direction, the acquisition of GPB Corp Sdn Bhd and the entry of Syed Abu Hussin.
Been too hot lately, need to cool down for a period of time. Dont worry if you have them cheap, keep it at least 3months i can assure u, u'll make some by then.
After they went into this electric business, Their value after valuation is roughly around RM2. But because this counter is cheap so that means there are a lot of speculators. And during times like this (bad bad bad time) speculators will just leave. Anyway this counter already overbought, so going back to correction is normal. If you can keep longer than 3 months is good, because this counter is related to one of the cronies. He make money, you make money. Nevertheless most important now is the health of the economy.
Yet again, I cant promise anything. Will give a sell call if there is anything serious happening to the stock. So far no news from the top, pure speculation so far. Just get ready for a very very bumpy ride Sept and Oct.
Big fish eating small fish just happened. I am shocked myself, +5 to -4!! Thank god I did not add in extra if not i would be one of the victim. LOL! Index is barely green only. Make sure to look out for the US Job employment data tomorrow! I am quite sure if the US employment data is bad, they will delay their tapering and our index can shoot up 30+ points. tomorrow night will be judgement day for all investors around the world.
Steady. It may drop further, all based on tonight's big US job report. Lets hope its a bad news for the US and gd news for us. If bad for us, Gunung will definitely tank to 60+sen.. Avg down when it hit 60sen. DONT TOUCH any stock yet at the moment. Dont want any of us to get caught at the high when KLCI tank below 1680.
There is an issue in their boardroom and something went wrong with something. I cant reveal much on this sensitive matter, but what you see everyday the UPs and DOWNs are actually ONE on ONE. Someone whacking the price down and someone supporting and pushes the price up. Anyhow it is a good long term stock, previously our valuation is based on 3months to touch RM1.50, now it takes longer time to reach that figure, we revise it to 6-8 months. So it is up to you, u can choose to dump or keep. We are keeping. =)
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
necro
4,726 posts
Posted by necro > 2013-04-06 18:35 | Report Abuse
How i will ever come until its toooooo late