PETALING JAYA: Renewable energy and environment solutions provider Samaiden Group Bhd has entered into a business collaboration agreement with Tokyo-listed engineering company Chudenko Corp to explore opportunities in the area of renewable energy (RE) in Malaysia as well as overseas markets.
Chudenko is a substantial shareholder of Samaiden with a 15.15% stake.
Under the agreement, the scope of business collaboration entails, among others, joint investment or venture in RE projects including rooftop solar energy project for Japanese customers, and collaborating in the introduction of technology in operations and maintenance of RE projects as well as other technologies.
Chudenko is a Japan-based general engineering company involved in the design, construction and maintenance of indoor electrical equipment, air conditioning and mechanical ventilation system structures and telecommunications facility. It also offers installation and maintenance services for distribution and transmission lines. Chudenko has a wide domestic reach in Japan with over 68 offices, as well as overseas presence with subsidiaries in Malaysia and Singapore. In recent years, Chudenko has been active in overseas investment of renewable energies. It is listed on the Tokyo Stock Exchange with a market capitalisation of ¥126.7 billion (RM4.6 billion).
Chudenko is an affiliate company of Japan’s electric utility Chugoku Electric Power Co Inc, which is primarily involved in the generation, transmission and distribution of electric power in Japan.
“Not only does it open us up to business prospects in Japan, but the group can also leverage on Chudenko’s technical know-how to enhance our existing offerings. Conversely, Samaiden’s RE expertise can be valuable in Chudenko’s decarbonisation initiatives.”
Chudenko managing executive officer Takakazu Higashioka said in line with Chudenko’s Medium-Term Management Plan 2024 to achieve decarbonisation by FY2050, it views Samaiden as an ideal proxy for it to expand usage of various renewable energies for electricity generation.
“In addition, our collaboration with Samaiden also allows us to further penetrate Malaysia and potentially the Asean region to capitalise on the rapid growth in RE adoption. We look forward to collaborating with Samaiden on exciting business opportunities in the RE industry and reap mutual benefits for both parties.”
Chudenko had earlier subscribed for 16.8 million new shares of Samaiden at RM1.27 per share via the private placement exercise, which represent a 7.27% equity stake. Thereafter, Chudenko acquired 18.2 million shares from Samaiden co-founder Fong Yeng Foon, which further increased its stake to 15.15%.
With the aim of building a sustainable business, Samaiden is eyeing investments in RE assets and power plants that give long-term recurring income. This collaboration with Chudenko as a substantial shareholder will also strengthen Samaiden’s future prospects as the group now has the financial backing of a large corporation, enhancing its capacity to enter into attractive investments that generate long-term value to shareholders.