BM Greentech acquisition Expanding the Clean Energy Portfolio

In a strategic move to significantly enhance its footprint in Malaysia’s renewable energy landscape, BM Greentech Berhad has announced the acquisition of clean energy solutions provider Plus Xnergy Holdings Sdn Bhd (PXH). The RM110 million deal, confirmed on June 18, 2024, positions the QL Resources Berhad subsidiary to capitalize on the growing demand for sustainable energy solutions and align with national green initiatives.

Transaction Details: BM Greentech acquisition Expanding the Clean Energy Portfolio

The acquisition will be settled through the issuance of 81,481,482 new BM Greentech shares at a price of RM1.35 per share. This share-based transaction underscores a deep-seated confidence in the synergistic potential of the two companies. To further accelerate growth, BM Greentech has also committed to injecting up to RM50 million in additional equity capital into Plus Xnergy, fueling its operational expansion and market reach.

Since its establishment in 2013, Plus Xnergy has built an impressive portfolio, specializing in solar photovoltaic projects across commercial, industrial, residential, and large-scale applications. The company has successfully installed over 400 megawatt-peak (MWp) of solar capacity, which has generated approximately 2,000 gigawatt-hours (GWh) of clean energy to date. This proven track record in engineering, procurement, and construction (EPC) makes PXH a pivotal addition to BM Greentech’s assets.

Synergy and National Energy Goals

This integration creates a formidable entity poised to offer comprehensive, end-to-end clean energy solutions. The move strategically aligns with Malaysia’s National Energy Transition Roadmap (NETR), which heavily emphasizes solar PV as a key component of the nation’s energy mix. By combining forces, the company is better equipped to participate in key government programs, including Net Energy Metering (NEM), Large-Scale Solar (LSS), and the Corporate Green Power Programme (CGPP).

The acquisition unlocks access to Malaysia’s vast untapped renewable potential, which includes an estimated 269 GW from solar sources. By integrating Plus Xnergy’s specialized expertise, BM Greentech strengthens its competitive edge, enhances project delivery capabilities, and solidifies its commitment to driving a sustainable future. Following the announcement, investor confidence was evident as BM Greentech’s share price saw a significant positive surge, reflecting strong market approval of the strategic partnership.

Sources

1. BM Greentech to Acquire Clean Energy Solutions Provider for …
2. [PDF] BM Greentech Advances Clean Energy Portfolio, Proposes RM110 …
3. BM Greentech – Expanding the Solar Energy Arm | I3investor
4. BM Greentech To Acquire Plus Xnergy In RM110 Million Clean …
5. [PDF] Crafting Synergies – Boilermech
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