Pasdec Holdings Berhad in Malaysia announced it has reached a share purchase agreement to dispose of its entire equity interest in Pasdec Mega Sdn. Bhd., which is developing a 5 MW hydropower project.
The company’s interest comprises 3,250,000 ordinary shares, with issued capital of MYR3,250,000 (US$721,700), and will be purchased by SPAC Sdn. Bhd. SPAC is a private limited company incorporated in 2022 that is principally involved in real estate activities, according to a release. SPAC paid consideration of MYR1,200,000 ($266,500) for the sale shares.
Pasdec Mega is developing a 5 MW small hydropower project at Sg. Benus, Kg. Janda Baik, District of Bentong.
Pasdec Holdings said the construction costs to complete the Sg. Benus Project escalated significantly from the original budgeted costs, due in part to the additional costs needed to repair the damaged pipes caused by a flood in 2020 and compounded by the increase in material prices. The board decided it is much beneficial to dispose of Pasdec Mega and the Sg. Benus Project. SPAC has specialized experience and expertise to complete the project.
Pasdec Holdings said it expects the transaction to be completed by the fourth quarter of 2023.
