Jaycorp Bhd is proposing to acquire the remaining 40% stake in its subsidiary, Jaycorp Green Energy Sdn Bhd (JGE), for RM15 million in cash, as part of its strategy to expand its footprint in the renewable energy sector and diversify its earnings base.
The acquisition involves the purchase of 2.33 million shares from Microban (M) Sdn Bhd, which will increase Jaycorp’s ownership in JGE from 60% to 100%. Upon completion, JGE will become a wholly owned subsidiary, allowing the group to fully consolidate its financial performance.
In a Bursa Malaysia filing on Thursday, Jaycorp said the move would eliminate non-controlling interests, enabling shareholders to benefit fully from JGE’s future earnings. The acquisition will be funded entirely through internally generated funds, with no additional liabilities expected.
Following the deal, the group also plans to formally diversify its core business to include renewable energy, covering the investment, development and operation of assets such as solar, biomass, biogas and waste-to-energy facilities.
Currently, Jaycorp’s primary businesses span furniture manufacturing, packaging, wood processing, construction, and trading and property-related activities. JGE, meanwhile, is involved in renewable energy, biomass and environmentally friendly waste treatment, including producing industrial steam from palm oil waste for the oleochemical sector.
Jaycorp noted that its renewable energy segment was the only division to record growth in both revenue and profitability for the financial year ended July 31, 2025, highlighting its potential as a more resilient earnings contributor.
“The proposed diversification enables the group to position renewable energy as a core and growing pillar of the business, alongside its existing manufacturing operations, while providing greater strategic flexibility to pursue opportunities across the renewable energy value chain,” the group said.
The proposals are expected to be completed by the fourth quarter of 2026, subject to shareholders’ approval and other regulatory requirements.
Jaycorp shares closed unchanged at 22.5 sen on Thursday, giving the group a market capitalisation of RM61.8 million. The stock has declined about 25% year-to-date.
