Jakel is now our single largest shareholder, says Cypark, confirming The Edge report

KUALA LUMPUR (Jan 4): Cypark Resources Bhd said Jakel Group has emerged as the renewable energy company’s single largest shareholder with a 27.33% stake.

This came after Cypark completed the placement of 176.65 million new shares under its private placement exercise, with all the shares taken up by Jakel’s investment arm Jakel Capital Sdn Bhd for RM67.1 million or 38 sen per share.

“With the placement, Jakel Capital has emerged as the single largest shareholder with a total direct and indirect shareholdings of 27.33% in Cypark,” Cypark said in a filing on Wednesday (Jan 4), confirming a report by The Edge on Tuesday.

Cypark said it views Jakel Capital as a new strategic bumiputera shareholder which will help preserve the company’s status as a bumiputera-controlled public-listed company and will be a long-term investor of Cypark.

“With the support of a strong bumiputera investor like Jakel Capital, Cypark expects to further optimise our strategic market position, enhance our shareholders base, expand and strengthen our business presence locally and regionally,” the company added.

Meanwhile, Jakel Capital said in a statement that the investment is to strategically rebalance the Jakel Group’s investment exposure with the incorporation of environmental, social and governance (ESG) investing into its portfolio.

“For Jakel Group to remain competitive in future, we are obliged to embrace and prioritise the ESG principles in everything we do, towards providing greener practices, products and services,” said Jakel Capital CEO Muhammad Ashraf.

“Through Cypark, we now have a platform and a role to play to advance Malaysia’s climate and sustainability agenda in achieving environmental sustainability by 2030,” he added.

Ashraf said that with Cypark now an associate company of Jakel Capital, the group’s investment arm is committed to investing in the company for the long haul and remains bullish on the growth of its clean energy industry.

Jakel Capital noted that the acquisition of shares via the private placement provides Cypark with an infusion of capital, with RM50 million earmarked for the development of the large scale solar 2 (LSS2) floating solar photovoltaic projects at Danau Tok Uban, Kelantan.

It added that the remaining proceeds will be used for working capital for the solid waste modular advanced recovery and treatment waste-to-energy plant at Ladang Tanah Merah, Negeri Sembilan.

With the emergence of Jakel Group as Cypark’s single largest shareholder, the previous holder of that status Chung Chee Yang has now been relegated to second place with 75 million shares (12.74% stake), followed by Cypark founding CEO Datuk Daud Ahmad with 39.84 million shares (6.77% stake).

Shares in Cypark closed 1.5 sen or 2.88% higher at 53.5 sen on Wednesday, giving the company a market capitalisation of RM409.5 million.

Source: https://www.theedgemarkets.com/node/650470

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