EGP Energy subsidiary, Malaysia-listed UUE Holdings unit form JV with initial paid-up capital of RM1 million

[SINGAPORE] EGP Infrastructure Investments (EGPII) – an indirect wholly owned subsidiary of EGP Energy – has entered into a joint venture agreement with a wholly owned subsidiary of Malaysia-listed UUE Holdings, for an initial paid-up capital of RM1 million (US$245,314).

This marks the electrical infrastructure solutions and service provider EGP Energy’s first overseas market entry since its listing on Jul 29, as part of its regional expansion strategy.

Kum Fatt Engineering (KFE) is registered with the Construction Industry Development Board Malaysia as a Grade G7 contractor, and is a unit of UUE Holdings, EGP Energy’s bourse filing on Tuesday (Sep 15) noted.

EGPII and KFE will incorporate a joint venture company in Malaysia, proposed to be named EGP-UUE Power System Engineering.

EGPII will hold a 60 per cent equity stake in the joint venture company, with the remaining 40 per cent held by KFE.

The joint venture company will provide turnkey power gird infrastructure solutions, covering construction, development and delivery of power grid infrastructure. This includes the supply and installation of extra-high-voltage (EHV) equipment – transformers, switchgear, cables and associated accessories for voltages of up to 500 kilo volts – in Malaysia.

This is on top of the construction and commissioning of transmission and distribution systems.

The move positions EGP Energy to participate in Malaysia’s growing power grid investment cycle, supported by the country’s national utility provider Tenaga Nasional’s ongoing grid modernisation programme, as well as rising electricity demand from data centres, industrial expansion and renewable energy integration.

It also provides the company with a local platform to pursue opportunities in EHV and high voltage (HV) power infrastructure projects in Malaysia.

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Additionally, the venture provides a platform to leverage its established track record and capabilities in EHV and HV power infrastructure in Singapore and expand into the Malaysian market, alongside a local partner, said the group.

Frankie Fan, executive chairman and chief executive officer of EGP Energy, said: “Malaysia’s grid investment cycle is entering a period of sustained growth; and by partnering with KFE, we gain an established local partner with relevant market knowledge and project experience in Malaysia, while we bring the EHV and HV systems-integration expertise and track record we have built up in Singapore over more than three decades.”

He added: “We see this as the foundation for a long-term platform in Malaysia, and a blueprint for future overseas growth plans.”

Shares of EGP Energy closed 2.7 per cent or S$0.02 lower at S$0.715 prior to the news.