Founder Group Plans Majority Stake in VES1 to Amplify Southeast Asia Operations
Deal News | Nov 25, 2024 | Globenewswire
Founder Group Limited, a Malaysian firm specializing in engineering, procurement, construction, and commissioning solutions for solar photovoltaic systems, has announced its intention to acquire an 80% stake in Vietnam's VES 1 Joint Stock Company, a subsidiary of VES Joint Stock Company. VES1 is involved in various solar projects across Vietnam, including rooftop installations. The acquisition will offer Founder Group exclusive rights to future solar and energy storage projects guaranteed by VES1 in Vietnam over the next three years. This aligns with Vietnam's strategic plan to significantly increase the share of renewable energy in its main energy structure by 2030, with projections for the solar system market to reach $12.4 billion by 2030. Founder Group sees this acquisition as a strategic step to enhance its position in the renewable energy sector and to contribute to Vietnam's energy transition goals.
Sectors
- Renewable Energy
- Solar Energy
Geography
- Vietnam – VES1, the target company, operates within Vietnam's solar energy market, which aligns with the country's strategic energy development plan.
- Malaysia – Founder Group Limited is based in Malaysia and is expanding its operations within the Southeast Asian region, emphasizing cross-border involvement in renewable energy projects.
Industry
- Renewable Energy – The acquisition involves companies specializing in solar and wind energy solutions, highlighting the renewable energy industry's push for sustainable energy resources.
- Solar Energy – Both Founder Group and VES1 focus on solar photovoltaic solutions, aligning with the strategic expansion of solar capabilities in Vietnam.
Financials
- 80% – The percentage of VES1 shares Founder Group intends to acquire, securing a majority stake.
- $12.4 billion – Projected revenue for Vietnam's solar system market by 2030.
- 16% – Expected compound annual growth rate (CAGR) for Vietnam's solar system market between 2023 and 2030.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Founder Group Limited | Bidding Company | Company | A Malaysian company specializing in solar photovoltaic system engineering, procurement, construction, and commissioning solutions. |
| VES 1 Joint Stock Company | Target company | Company | A subsidiary of VES Joint Stock Company, focused on developing solar projects in Vietnam. |
| VES Joint Stock Company | Selling Company | Company | A pioneer in Vietnam's renewable energy sector, specializing in solar and wind energy solutions. |
| Lee Seng Chi | CEO of Founder Group Limited | Person | CEO of Founder Group Limited, advocating for strategic expansion in renewable energy solutions. |
| Andy Nguyen | Chairman and Founder of VES Joint Stock Company | Person | Chairman and Founder of VES, emphasizing commitment to renewable energy and the energy development strategic plan in Vietnam. |