KUALA LUMPUR (May 12): Pekat Group Bhd (KL:PEKAT) has inked a 15-year power purchase agreement (PPA) worth RM23.04 million with Dutch Lady Milk Industries Bhd (KL:DLADY) to develop and operate a rooftop solar photovoltaic (PV) system at the dairy producer’s facility in Negeri Sembilan.
In a bourse filing, Pekat said its indirect wholly owned unit, Pekat Solar Sdn Bhd, signed the agreement on May 12.
Under the terms, Pekat Solar will design, construct, install, own, operate and maintain a solar PV system with a direct current capacity of 3,960.13 kilowatt-peak (kWp) at Dutch Lady’s premises in Bandar Enstek, Nilai.
The system is expected to commence commercial operations in the fourth quarter of 2026, supplying renewable energy to Dutch Lady throughout the concession period.
Pekat will retain ownership of the PV system during the tenure. Three months before expiry, Dutch Lady may either renew the agreement or acquire the system, subject to mutually agreed terms.
The group estimated the project’s value at RM23.04 million, based on projected revenue over the 15-year period. It added that the PPA is expected to contribute positively to future earnings, while having no impact on its issued share capital or major shareholders’ stakes.
Pekat also noted that it does not anticipate any exceptional risks beyond normal operational and non-completion risks associated with the facility.
By Tuesday’s midday break, shares in Pekat were down one sen or 0.6% at RM1.57, valuing the group at RM1.11 billion. Over the past one year, the stock has gained 25.6%.
Meanwhile, Dutch Lady shares were down 22 sen or 0.7% at RM32.80, giving it a market capitalisation of RM2.1 billion. The counter has gained 13.1% over the past year.
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