Gamuda Bhd is all set to acquire a 30% stake in the solar energy company ERS Energy Sdn Bhd in Malaysia.
ERS Energy is one of the largest solar players in the region with a capacity of 700 MW completed large-scale solar projects.
Gamuda Bhd will acquire the stake for RM200 million through the subscription of shares, it stated. A local report mentioned that currently, it is a joint venture partner of Gamuda in Neda Pekan Sdn Bhd to build a 39 MW solar power plant.
The investment will grow Gamuda's renewable energy asset portfolio to over 800 MW in the next few years.
This power plant will be developed under the New Enhanced Dispatch Arrangement (Neda) framework.
According to Gamuda Bhd, it has set a target of reducing carbon emissions intensity by 30% in 2025 and 45% in 2023.
"Upon completion of the proposed ERS Energy investment, apart from the 30% stake in ERS Energy, Gamuda will also effectively hold 64% of shareholdings in Neda Pekan. The participation in Neda Pekan will put Gamuda and ERS Energy in a front-runner position of the recently announced Corporate Green Power Programme,” it mentioned in a statement.
“Our partnership with ERS Energy will be integral to enabling us to actively participate in the world’s transition to net-zero, and to grow our RE asset portfolio to over 800MW in the next few years. This would position the group to be Malaysia’s largest private RE producer,” Gamuda deputy group MD Mohammed Rashdan Mohd Yusof stated.