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Federal International inks tentative deal with China’s SPIC unit to acquire solar assets for repair and upgrade – EQ Mag Pro

Federal International inks tentative deal with China’s SPIC unit to acquire solar assets for repair and upgrade – EQ Mag Pro

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KUALA LUMPUR: Small-cap construction outfit Federal International Holdings Bhd’s joint venture outfit has inked a memorandum of understanding (MoU) with SPIC Energy Malaysia Bhd to acquire a stake in some operating solar energy assets.

The MoU was inked between Federal International’s 50%-owned company Warrants RE Assets Sdn Bhd with SPIC Malaysia, “to acquire in part or in whole operating Feed-In Tariff, Net Metering and Large Scale Solar solar farm”, Federal International’s bourse filing on Friday read.

“The collaboration will focus on the acquisition of solar farm, which would then undergo a process of repair and upgrade under a team led by SPIC. This will help the escalation of the turnaround of the solar farm that has been acquired and help to generate immediate positive cash flow,” it added.

SPIC Malaysia is the wholly-owned unit of Chinese utility giant SPIC (State Power Investment Corp), which has 126GW of installed generation capacity through its global presence.

Federal International is primarily involved in the construction business, with footprints in furniture manufacturing and interior fit-out businesses as well.

Under the MoU, Warrants RE Assets will fund the project, while SPIC Malaysia will provide technical support.

Shares of Federal International settled up 4.5 sen or 7.2% at 67 sen, ahead of the announcement on Friday, valuing it at RM82.94 million.

Source: theedgemarkets

Anand Gupta Editor - EQ Int'l Media Network