Asia Bioenergy Technologies Bhd (AsiaBio) buys AT Systemization Bhd’s (ATS) stake

Thursday, Aug 06, 2015

Asia Bioenergy Technologies Bhd (AsiaBio) has subscribed for AT Systemization Bhd’s (ATS) placement shares, making it a substantial shareholder of the ACE Market-listed manufacturer of industrial automation systems and machinery.

The technology incubator told Bursa Malaysia yesterday that unit Asiabio Capital Sdn Bhd was paying RM3.94mil, or 10 sen per share, for the 9.09% stake in ATS’ enlarged issued and paid-up capital.

ATS had in June last year announced a private placement exercise involving the issuance of up to 10% of its enlarged paid-up capital. The company, which had incurred a net loss of about half a million ringgit in the first quarter ended May 31, 2015, is seeking to raise funds for business expansion, eyeing the glove and medical industries as potential new areas.

On the rationale for the share acquisition, AsiaBio said it had investment interest in the business of renewable energy, which is currently being pursued by ATS.

On March 9, ATS’ wholly owned subsidiary – AT Engineering Solution Sdn Bhd (ATES) – had secured the feed-in approval from the Sustainable Energy Development Authority (Seda).

Seda has set a fixed-rate tariff of 69.77 sen per kWh and an additional bonus rate-tariff ranging from five sen per kWh to 17.22 sen per kWh, at which ATES can sell electricity to Tenaga Nasional Bhd during the concession period.

ATES expects to build a 425kW solar power plant at its existing factory in Bayan Lepas, Penang, by December this year and estimates the plant would be able to generate RM11mil worth of renewable energy over the concession period.

AsiaBio said the group believed that solar power was set to become one of the most rapidly growing renewable energy sources in the world and its outlook would remain favourable in the long term due to increasing demand for renewable energy, which is further endorsed by the Government.

Under the 10th Malaysia Plan, the Government has set a target for renewable energy to make up 5.5%, or 985MW, of Malaysia’s total electricity mix to be generated by this year.

AsiaBio had last month aborted its plan to buy two shipping companies, earlier intended as its ticket into the oil and gas transportation sector.

Datuk Nur Jazlan Mohamed, who is the Deputy Home Minister, had been its chairman prior to his Cabinet appointment.

AsiaBio shares shed half a sen to close at 6.5 sen yesterday. ATS, meanwhile, gained one sen to 10 sen at the end of trading.

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