The biomass boiler company said in a filing with Bursa Malaysia today that the terms of the proposed acquisition will be formalised in a conditional share sale agreement (SSA) to be entered into within 30 days from the date of the term sheet.
“The purchase consideration shall be fully satisfied by the issuance and allotment of 81.48 million new ordinary shares in BMG at an issue price of RM1.35 per consideration share by BMG to the vendors,” it said.
It said in conjunction with the SSA, the company shall also undertake a proposed special issuance of new BMG shares (placement share) at the same price at RM1.35 per share to its direct holding company, QL Green Resources Sdn Bhd, to maintain QL’s shareholdings in BMG above 50% of the equity interest.
“The proceeds raised from the proposed special issuance to QL will primarily be channelled towards the business expansion of the BMG Group and the PXH Group.
“The proposed special issuance to QL and the proposed acquisition shall be inter-conditional upon each other,” it noted.
BMG also shared that the PXH Group is principally involved in the provision of clean energy solutions for commercial, industrial, residential, and large-scale solar (LSS) projects including solar farms.
“The term sheet demonstrates BMG’s long-term commitment to its vision to be the regional partner of choice for innovative and cost-effective green energy and water solutions that achieve lasting sustainability,” it said.
As a biomass energy solutions provider and an emerging rooftop solar photovoltaic company, BMG said the proposed acquisition will strengthen its position as a diversified clean energy solutions provider in the region.
“The proposed acquisition will also strengthen the BMG Group’s participation in Malaysia’s net zero journey, as pledged by the Malaysian government through the 12th Malaysia Plan, aiming for carbon neutrality by 2050.
“The board also expects that the exercise will foster a synergistic partnership between the PXH Group and the BMG Group and is envisaged to drive the mutual growth of both groups of companies moving forward,” it said.