KUALA LUMPUR (July 20): G Capital Bhd has proposed to acquire the remaining 40% it does not own in Perak Hydro Renewable Energy Corp Sdn Bhd in a share deal that may see Perak MB Inc emerge as a substantial holder of G Capital.

The group said it has signed a term sheet to purchase the Perak Hydro stake from Perak MB Inc by issuing 100 million new G Capital shares at 50 sen apiece (for a total sum of RM50 million) and redeemable convertible preference shares (RCPS) of 50 sen apiece (the number of RCPS will be determined later).

The total purchase consideration will be determined at a later stage pending the completion of a related valuation exercise, G Capital said in a bourse filing yesterday.

Perak Hydro currently has the exclusive rights to build, operate and own mini hydropower plants at 31 pre-identified sites with an estimated total installed capacity of 286.1MW for a period of 21 years from the feed-in-tariff commencement date for each site.

Pending finalisation of the share sale agreement to be inked in the future, Perak MB Inc will not grant any approval or letter of support to any other third party without G Capital's consent, in relation to eight mini hydro projects in rivers in Perak totalling 26.5MW.

"It is an honour to have Perak MB Inc considering equity participation at G Capital level," said G Capital executive director Tan Sri Dr Ali Hamsa in a separate statement.

He added: "With the excellent success stories of Perak MB Inc serving as holding arm for the state of Perak in diversified mineral development, property development and various strategic industries, we have faith that this proposal shall lead to the formation of a long-term strong alliance between G Capital and Perak MB Inc."

Get the latest news @ www.EdgeProp.my

Subscribe to our Telegram channel for the latest stories and updates 

Click here for more property stories