Samaiden Group inks agreement with Tokyo-listed Chudenko Corporation to explore RE business in Malaysia, overseas

KUALA LUMPUR: Renewable energy and environment solutions provider Samaiden Group Bhd (SHB) today signed a business collaboration agreement with Tokyo-listed Chudenko Corporation to explore opportunities in the area of renewable energy (RE) in Malaysia and overseas markets.

Under the agreement, the scope of business collaboration entails joint investment or venture in RE projects, including rooftop solar energy projects for Japanese customers, and collaborating in the introduction of technology in operations and maintenance (O&M) of RE projects as well as other technologies.

SHB group managing director Ir Chow Pui Hee said this collaboration allows the company to leverage each party’s strengths to accelerate growth in the RE sector while tapping on Chudenko’s broad business network, especially in the area of the renewable energy business.

“Not only does it open us up to business prospects in Japan, but SHB can also leverage Chudenko’s technical know-how to enhance our existing offerings.

“Conversely, SHB’s RE expertise can be valuable in Chudenko’s decarbonisation initiatives,” he said in a statement today.

Chudenko is one of the leading engineering companies in Japan and a substantial shareholder of SHB with an equity stake of 15.15 per cent.

Chudenko managing executive officer Takakazu Higashioka view SHB as an ideal proxy for the company to expand usage of various renewable energies for electricity generation.

“In addition, our collaboration with Samaiden also allows us to penetrate Malaysia further and potentially the ASEAN region to capitalise on the rapid growth in RE adoption.

Chudenko had earlier subscribed for 16.8 million new ordinary shares of SHB at RM1.27 per share via the private placement exercise, representing a 7.27 per cent equity stake.

After that, Chudenko acquired 18.2 million ordinary shares from Fong Yeng Foon, a co-founder of SHB, which further increased its stake to 15.15 per cent.

Chudenko has a vast domestic reach in Japan, with over 68 offices and an overseas presence with subsidiaries in Malaysia and Singapore.

In recent years, Chudenko has been active in the overseas investment of renewable energies. It is listed on the Tokyo Stock Exchange (TSE) with a market capitalisation of JPY126.7 billion (equivalent to RM4.6 billion).

To build a sustainable business, SHB is eyeing investments in RE assets and power plants that give long-term recurring income.

This strategic collaboration with Chudenko as a substantial shareholder will also strengthen Samaiden’s prospects as SHB now has the financial backing of a large corporation, enhancing its capacity to enter into attractive investments that generate long-term value to shareholders.

Source : New Straits Times (Online)