Solar power to drive Gadang's future earnings?
KUALA LUMPUR: Chin Hin Group Bhd
is pushing ahead with its foray into the solar power investment business with the proposed purchase of stakes in three companies for RM24.75mil.
The building materials company said on Monday it had inked an MoU with the shareholders of Atlantic Blue Sdn Bhd; Powertrack Sdn Bhd and Solarvest Energy Sdn Bhd buy a 45% stake.
Chin Hin said the move was to boost its involvement in solar power investment business and also to expand regionally to tropical countries.
The corporate exercise would allow Chin Hin to enjoy the profits derived from the business of the companies.
It said the purchase consideration was based on the unaudited profit after taxation of the three companies for the financial year ending 31 March 2017 and profit guarantees on their profit after taxation up to the sum of RM10mil for FY ending March 31, 2018 and 2019 to be provided by the vendors.
It said Atlantic Blue's core activities were installing equipment for solar power energy, sale of electricity through solar generation and property investment holdings.
As for Powertrack and Solarvest, they are associate companies of Atlantic Blue and they are involved in the engineering, procurement and construction of equipment for solar energy.
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