Sunview Group abandons biogas venture
Provectus Bioenergy is engaged in the operation of generation facilities that produce electric energy.
In a bourse filing on 3 August, Sunview stated that the termination was a result of the parties' inability to reach a consensus on the terms of the share sale agreement (SSA) for the entire shareholding in Provectus Bioenergy.
"As a result, the parties have decided that it is in the best interest to mutually terminate the proposed acquisition and SSA," it said.
Sunview added its indirect wholly-owned subsidiary Suntech Energy Sdn Bhd, together with the purchasers namely Warrants RE Assets Sdn Bhd, Intechcity Construction Sdn Bhd and Pasir Lembayung Sdn Bhd, had entered into a deed of mutual termination with the vendors, Ee Hood Liang and Wong Pak Wei.
The termination will have no material effect on the group's share capital and substantial shareholder’s shareholdings, net assets per share, gearing and earnings per share for the financial year ending March 31, 2024, according to the company.
Under the earlier deal, Sunview was to own 20% in Provectus Bioenergy while Suntech Energy, Warrants RE Assets, Intechcity Construction and Pasir Lembayung were to own the remaining 80% post-acquisition.
The acquisition would have been Sunview's first venture into the biogas renewable energy industry and serve as its launchpad to many more biogas renewable energy projects to come.