Cepatwawasan Group Bhd’s wholly-owned subsidiary, Cash Nexus (M) Sdn Bhd, has signed an agreement to sell a 40% stake in Cash Horse (M) Sdn Bhd — operator of a 12MW biomass power plant in Sandakan, Sabah — to its Australia Securities Exchange-listed subsidiary for RM31.61 million in cash.
The conditional share sale agreement was entered into with Timah Resources Ltd, a 69.8%-owned subsidiary of Cash Nexus, according to a filing with Bursa Malaysia.
Cepatwawasan said the disposal forms part of its long-term strategy to diversify into the renewable energy sector, providing a hedge against volatility in the crude palm oil market. The group noted that the value of its renewable assets is not fully reflected in its current share price.
“The proposed disposal will help highlight and substantiate the value of Cepatwawasan’s renewable assets and provide greater liquidity through the trading of Timah shares. At the same time, the group will continue to maintain a majority stake in its renewable energy portfolio,” the company said.
The filing noted that the original investment in the shares of Cash Nexus was RM23.5 million, incurred between 2009 and 2024. As of December 31, 2024, Cash Horse reported a profit after tax of RM2.33 million and net assets of RM77.41 million.
The disposal is expected to generate a pro forma gain of approximately RM650,000 for Cepatwawasan, calculated as the difference between the disposal consideration and 40% of Cash Horse’s audited net assets as of December 31, 2024.
