Careplus Group collaborates with expert to venture into RE

Careplus Group collaborates with expert to venture into RE

26 Apr 2023

Rubber glove maker Careplus Group Bhd is teaming up with an individual Woon Howl Chuen to venture into the renewable energy (RE) and energy efficiency management business, in a bid to provide an alternative source of income that will enhance the group’s profitability in the future.

In a bourse filing on Wednesday (April 26), Careplus said the company and its wholly-owned subsidiary Masterclean Technologies Sdn Bhd had entered into a collaboration and option agreement with Woon for the proposed venture. He is granted an option to subscribe for an aggregate of up to 70,000 shares in Masterclean Technologies. No information was given on Woon.

Under the deal, Careplus and Woon will subscribe for new Masterclean Technologies shares for RM1 apiece, which will result in Careplus’ equity interest in Masterclean Technologies reducing by 7.7% from 100% to 92.3%.

The call option may be exercised by Woon in one or multiple tranches of not less than 10,000 Masterclean Technologies shares per tranche, at any time within three years, by issuing a notice to Masterclean Technologies of such exercise.

“In the event the call option is fully exercised by Woon, the equity interest by Careplus in Masterclean Technologies will (reduce to) become 60%,” Careplus said.

The group added that the call option provides Careplus with the opportunity to work closely with Woon in the solar energy sector for at least three years. “This allows Careplus to leverage Woon’s expertise in this field, which can be crucial for the success of this new venture.”

Careplus shares closed unchanged at 31 sen on Wednesday, giving it a market capitalisation of RM179.33 million. The share price had fallen 35.42% year to date.

Source: The Edge Markets