Fitters Diversified to sell stake in China power firm

PETALING JAYA: Fitters Diversified Bhd’s subsidiary Fitters-NRG Sdn Bhd is disposing its entire stake in Liangshan Future NRG Biology Electric Power Co Ltd (Liangshan) for RM25.2 million cash (equivalent to RMB40 million).

Fitters-NRG is engaged in renewable energy development, while Liangshan is involved in development and operation of Liangshan Biomass Power Plant.

The group told the stock exchange yesterday that Fitters-NRG has entered into a share sale agreement (SSA) with Shandong Yongneng Energy-Conserving and Eco-Friendly Services Holding Corp for the disposal of its 100% equity in Liangshan.

Fitters said the proposed disposal is to divest non-operating assets in Liangshan and for the group to streamline its business operations and redeploy its resources for better return.

Upon completion of the proposed disposal, Liangshan will cease to be the group’s subsidiary.

Fitters said the proposed disposal will not have any material effect on the group’s share capital, substantial shareholders’ shareholdings, net assets, net earnings and gearing for the financial year ending Dec 31, 2017.

Upon completion of the proposed disposal, the group is expected to record a loss on disposal of RM9.3 million.

Founded on 2011, Shandong Yongneng is engaged in services relating to energy-conservation and environmental protection.