AE Multi Holdings plans to venture into renewable energy

PETALING JAYA: Printed circuit boards manufacturer AE Multi Holdings Bhd (AEM) plans to diversify into the renewable energy industry by collaborating with JMT Kelantan Baru Sdn Bhd.
JMT will grant AEM the right of operating and maintaining two 10MW integrated flood mitigated mini-hydro power project in in the district of Machang, Kelantan.
AEM will be entitled to 80% of the total profit from the sale of power to Tenaga Nasional Bhd (TNB) pursuant to the renewable power purchase agreements signed between JMT and TNB on the condition that AEM invests RM140 million in JMT.
In a statement yesterday, AEM said it plans to undertake a corporate exercise to raise funds for the investment.
AEM yesterday entered into a heads of agreement with JMT for the collaboration, which is subject to the approvals of shareholders and authorities.
JMT is principally involved in the design, construction and operation of mini hydropower plants. It holds feed-in approvals for two renewable energy installations.