Seal invests RM15mil in loss-making solar panel installer. Seal Incorporated Bhd, a prominent business group in Malaysia, recently announced its decision to invest RM15 million in MSR Green Energy, a struggling solar panel installer. This investment presents an exciting opportunity for Seal to venture into the renewable energy sector and expand its business portfolio.
With a plan to purchase a 20% equity stake in MSR Green Energy and subscribe to 1.06 million irredeemable convertible preference shares, Seal aims to focus on engineering, procurement, construction, and commissioning works for the solar and renewable energy industries.
The move aligns with Malaysia’s efforts to decarbonize its electricity industry, making it a strategic decision for Seal. This investment also marks the company’s diversification into a new sector and establishing itself as an environmental, social, and governance (ESG) entity. So let’s dive deeper into the details of this promising investment by Seal in MSR Green Energy.
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Introduction to Seal’s Investment in Solar Panel Installer
Seal Incorporated Bhd’s leap into sustainable energy is a forward-thinking move signaling commitment to renewable energy and ESG standards. By investing in MSR Green Energy, Seal is laying the groundwork for a greener future and financial diversification.
- Seal invests RM15 million in a solar technology firm.
- The acquisition includes a 20% equity stake in MSR.
- Seal to partake in engineering and construction for solar.
- The investment aligns with national decarbonization energy efforts.
- Diversification is seen as a response to post-pandemic economic shifts.
- Internally generated funds, private placement to finance deal.
- Seal’s share issue is priced at 26 sen each to investors.
- The partnership enhances Seal’s ESG investment credentials.
Seal’s strategic RM15 million investment positions it as an emerging ESG player, while aligning with Malaysia’s green initiatives.
Overview of Seal’s Investment
PETALING JAYA: For RM8.7 million, Seal Incorporated Bhd has offered to purchase a 20% equity stake in the struggling solar panel installer MSR Green Energy Sdn Bhd.
In addition, the group plans to subscribe to RM6.3 million for 1.06 million irredeemable convertible preference shares in MSR Green Energy. Seal is going to invest RM15 million in total.
Seal stated in a filing with Bursa Malaysia that this investment presents a chance for the company to expand into the renewable energy sector and concentrate on engineering, procurement, construction, and commissioning (EPCC) works for the solar and renewable energy industries.
According to the statement, this action also fits with prospects resulting from the government’s coordinated efforts to decarbonize the electricity industry.
“The group’s foray into solar renewable energy will allow it to diversify its revenue streams and create a more resilient business model, particularly in light of the impact of the COVID-19 pandemic on businesses and economies worldwide,” Seal stated.
Seal stated that the investment would be financed by internally produced funds and a private placement exercise that was concluded on July 20, 2023. The investment is anticipated to be finished by the second quarter of this year.
62.3 million new ordinary shares in Seal, or almost 20% of all shares issued, will be placed in this way. The shares are priced at RM16.19 million and will be extended to Chen Khai Voon at an issue price of 26 sen each.
Additionally, it stated, “The proposed investment will give Seal a way to gradually become an environmental, social, and governance (ESG) entity, which will give Seal more recognition and support among investors, especially among the larger institutional investors who make investments based on ESG criteria.”
According to Seal, MSR Green Energy specializes in solar photovoltaic (PV) system installation and maintenance, renewable energy project management, construction and consulting, electrical work, and other related businesses. It creates solar PV projects that comprise solar PV system design and EPCC.MSR Green Energy reported a loss after tax of RM14.3 million and a deficit in net assets of RM8.3 million for the fiscal year that concluded on December 31, 2022 (FY22).
Conclusion Seal invests RM15mil in loss-making solar panel installer
In wrapping up, Seal Incorporated Bhd’s green venture is more than just a mere investment; it’s a beacon of hope for sustainable development. By embracing solar energy, Seal not only casts a vote for the environment but also catapults itself into the future economy. Keep watching this space for more eco-friendly business moves, because, at the end of the day, it’s all about generating profits while caring for our planet. Here’s to a brighter, greener future with Seal leading the charge! 🌿💡
FAQ
Q.01. Is manufacturing solar panels profitable?
A.1. Yes, manufacturing solar panels can be profitable as there is a growing demand for renewable energy and the cost of producing solar panels has decreased in recent years. However, it also depends on various factors such as market competition, government policies, and technological advancements.
Q.02. Are solar panels becoming more popular?
A.2. Yes, there has been a significant increase in the adoption of solar panels in recent years due to the growing focus on renewable energy and government initiatives to promote their usage. Moreover, advancements in technology have made solar panels more efficient and cost-effective, making them a popular choice for sustainable energy solutions. So it is safe to say that the future looks bright for the solar panel industry.
Q.03. How many solar installers are there in the US?
A.3. As of 2021, there are over 4,000 solar panel installers in the US, according to the Solar Energy Industries Association (SEIA). This number is expected to increase as more and more companies enter the solar market and demand for renewable energy continues to rise.
Q.04. Who is the largest residential solar installer in the US?
A.4. As of 2021, Sunrun Inc. is the largest residential solar installer in the US with a market share of 9.2%, followed by Tesla (7%), Vivint Solar (5.6%), and SunPower (3.7%). Other major players in the residential solar market include LG Electronics, Sunnova Energy, and PetersenDean. So it is evident that the residential solar market in the US is highly competitive with multiple companies vying for a share of the growing market.
Q.05. Who is the most reputable solar company?
A.5. According to a 2020 survey conducted by SolarPower Europe, the most reputable solar company is SunPower Corporation, followed by Canadian Solar and JinkoSolar. These companies were evaluated based on criteria such as financial strength, sustainability, and customer service. However, it’s important to note that reputation can vary depending on factors such as location and target market.
