Gamuda said it would subscribe to 4.29 million shares in ERS Energy, its joint-venture partner in NEDA Pekan Sdn Bhd to develop a 39 megawatt solar power plant under the New Enhanced Dispatch Arrangement (Neda) framework.

On completion of the exercise, ERS Energy will become a 30%-owned associate and Gamuda will effectively hold 64% of NEDA Pekan, it said in a filing with Bursa Malaysia today.

The engineering, property and infrastructure company said proceeds from the subscription shares would be utilised for ERS Energy’s direct investment into cash accreting solar generation assets, including NEDA Pekan as well as working capital for renewable energy opportunities and expansion in the regional market.

The proposed acquisition will enable the Gamuda group to fast track its renewable energy business plan.

It will also be a springboard for the group in pursuing much wider energy-related opportunities presented by the trajectory of the global energy transition including energy storage, smart grids, and associated infrastructure.

“The investment and partnership with ERS Energy will be integral to enabling the Gamuda group to actively participate in the world’s transition to net-zero (carbon emissions), in line with Gamuda green plan which commits the group to reduce carbon emissions intensity by 30% in 2025 and 45% in 2030,” it added.