VCI Global Limited plans to acquire a 1.14 MW solar farm in North Macedonia for approximately $1.26 million.
Quiver AI Summary
VCI Global Limited has announced a term sheet agreement to acquire a 1.14 megawatt solar farm in Novo Selo, North Macedonia, for approximately $1.26 million, pending due diligence and a definitive agreement. The solar farm, equipped with Huawei inverters, has a high performance ratio of over 90% and is connected to the national grid with a Power Purchase Agreement (PPA), ensuring stable revenue through energy sales and carbon credits. This acquisition aligns with North Macedonia's goals to increase renewable energy use, aiming for 38% renewable share by 2030. VCI Global plans to pursue further solar farm acquisitions in Southeast Asia and Europe as part of their strategy to build a sustainable asset portfolio.
Potential Positives
- VCI Global has signed a term sheet to acquire a solar farm in North Macedonia valued at approximately US$1.26 million, marking a strategic entry into the European renewable energy market.
- The solar farm has an estimated capacity of 1.14 MW and operates with a high system performance ratio of over 90%, indicating strong operational efficiency.
- The acquisition is expected to generate stable revenue streams through a Power Purchase Agreement, alongside additional income from carbon credits, enhancing profitability.
- VCI Global plans to pursue more solar farm acquisitions across Southeast Asia and Europe, aiming to build a sustainable asset portfolio in the renewable energy sector.
Potential Negatives
- The acquisition is contingent upon due diligence and the signing of a definitive agreement, indicating that the deal is not guaranteed and may fall through.
- The press release highlights a reliance on projections of financial returns and specific revenue streams, which may raise concerns about the company's actual performance versus expectations.
- The company has historically depended on industries (lignite coal mining and gas imports) that may conflict with its new renewable energy initiatives, potentially signaling a lack of alignment in its operations and strategic vision.
FAQ
What recent acquisition has VCI Global Limited completed?
VCI Global has signed a term sheet to acquire a solar farm in North Macedonia with a capacity of 1.14 MW.
What is the value of VCI Global's solar farm acquisition?
The acquisition of the solar farm is valued at approximately US$1.26 million (or around €1.2 million).
How does the solar farm generate revenue?
The solar farm generates revenue through energy sales under a Power Purchase Agreement and revenue from carbon credits.
What technology is used in the acquired solar farm?
The solar farm is equipped with Huawei Technology inverters, allowing it to achieve a high system performance ratio.
What are North Macedonia's renewable energy goals?
North Macedonia aims to achieve a 38% share of renewables in final energy consumption by 2030 and 42% by 2040.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$VCIG Hedge Fund Activity
We have seen 3 institutional investors add shares of $VCIG stock to their portfolio, and 6 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- VIRTU FINANCIAL LLC removed 36,128 shares (-100.0%) from their portfolio in Q3 2024
- GEODE CAPITAL MANAGEMENT, LLC removed 22,854 shares (-96.2%) from their portfolio in Q3 2024
- SUSQUEHANNA INTERNATIONAL GROUP, LLP removed 16,225 shares (-97.6%) from their portfolio in Q3 2024
- TWO SIGMA SECURITIES, LLC added 13,256 shares (+inf%) to their portfolio in Q3 2024
- CITADEL ADVISORS LLC removed 12,586 shares (-100.0%) from their portfolio in Q2 2024
- BANK OF AMERICA CORP /DE/ removed 9,614 shares (-100.0%) from their portfolio in Q2 2024
- HRT FINANCIAL LP added 1,836 shares (+inf%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
KUALA LUMPUR, Malaysia, Dec. 19, 2024 (GLOBE NEWSWIRE) -- VCI Global Limited (NASDAQ: VCIG) (“VCI Global” or the “Company”), has signed a term sheet to acquire a solar farm with an estimated capacity of 1.14 megawatts (MW), located in Novo Selo, North Macedonia. The acquisition is valued at approximately US$1.26 million (or approximately €1.2 million) and is subject to due diligence and the signing of a definitive agreement.
The bifacial solar farm, equipped with Huawei Technology inverters, achieves a high system performance ratio of over 90%, meaning it operates at more than 90% of its theoretical maximum output despite external factors. These inverters efficiently convert the direct current (DC) electricity generated by the solar panels into alternating current (AC) electricity, which is suitable for distribution through the national grid. The solar farm is connected to the national grid under a Power Purchase Agreement (PPA) with Mega Concept LLC Skopje, ensuring stable revenue streams based on HUPX pricing. In addition to income from energy sales, the project generates significant additional revenue through carbon credits, further boosting its profitability. With a projected payback period of approximately 9 years, the solar farm is expected to deliver strong financial returns throughout its 30-year operational lifespan.
Despite historically relying on lignite coal mining for approximately 30% of its electricity production and gas imports for an additional 15%, North Macedonia has set ambitious decarbonization goals. According to its National Energy and Climate Plan (NECP), the country aims to achieve a 38% share of renewables in final energy consumption by 2030 and 42% by 2040. By the end of 2023, North Macedonia had deployed 535 MW of solar capacity, a significant increase from 190 MW at the end of 2022, according to the International Renewable Energy Agency (IRENA).
This remarkable growth in the solar industry has been driven by abundant sunlight, progressive government policies to reduce coal dependency, and the country’s strategic position as a gateway between Southeast Europe and the European Union. VCI Global views this acquisition as a pivotal step toward entering the European renewable energy market.
VCI Global has engaged the consulting firm OTB Solutions Dooel Skopje in North Macedonia to identify and secure additional solar farm opportunities.
“This is the beginning of a series of solar farm acquisitions that VCIG will undertake and looking ahead for more acquisition opportunities across Southeast Asia and Europe. By targeting solar farms with strong grid connections and government support, we are building a sustainable asset portfolio,” said Dato’ Victor Hoo, Group Executive Chairman and CEO of VCI Global.
About VCI Global Limited
VCI Global is a diversified holding company headquartered in Kuala Lumpur, Malaysia. The Company operates through five core businesses: Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity. In Capital Market Consultancy, we provide IPO solutions, investor relations (IR) and public relations (PR) consultancy, and M&A consultancy. Our Fintech arm offers a proprietary financing platform. In Real Estate, we offer specialized real estate consultancy services. The AI business delivers GPU servers, GPU cloud computing services, AI and large language model (LLM) solutions, while the Robotics segment focuses on post-harvest robotics systems. Our Cybersecurity segment provides comprehensive cybersecurity consultancy services and solutions. Committed to fostering innovation and delivering exceptional value, VCI Global has established a strong presence across the Asia-Pacific region, the United States, Europe, and the Middle East, driving growth and transformation on a global scale.
For more information on the Company, please log on to
https://v-capital.co/
.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These forward-looking statements are based only on our current beliefs, expectations, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Therefore, you should not rely on any of these forward-looking statements. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company’s ability to achieve profitable operations, customer acceptance of new products, the effects of the spread of coronavirus (COVID-19) and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company’s products and the Company’s customers’ economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions and other risk factors detailed in the Company’s filings with the United States Securities and Exchange Commission (“SEC”). The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.
CONTACT INFORMATION:
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