CITAGLOBAL BERHAD Expands into Hydropower with Strategic Acquisition in Perak
In a significant move to diversify its renewable energy portfolio, Citaglobal Berhad has acquired majority stakes in two hydropower projects in Perak, Malaysia, for a total of RM15 million. This strategic acquisition, announced on August 11, 2025, underscores Citaglobal’s commitment to Malaysia’s vision for a low-carbon economy and its alignment with the country’s structural energy reforms.
The acquisition was executed through Citaglobal Renewable Energy Sdn Bhd, a wholly-owned subsidiary of Citaglobal Berhad. The company acquired a 70% stake in Zeqna Corporation Sdn Bhd for RM15 million and a conditional RM1 acquisition for a 70% stake in Koridor Mentari Sdn Bhd, contingent upon the completion of the Zeqna acquisition. The remaining 30% stakes in both companies will continue to be held by Perak Hydro Renewable Energy Corporation Sdn Bhd (PHREC), which has been granted water rights by the Perak state government for mini hydropower development.
Immediate Revenue and Long-term Potential
Citaglobal’s acquisition positions the company to immediately generate revenue from the Slim Hydropower Plant, a 6 megawatts (MW) brownfield asset operational since July 2019. The plant is expected to generate up to RM19 million in recurring annual revenue under long-term renewable energy power purchase agreements with Tenaga Nasional Berhad (TNB).
Additionally, the Kampar Hydropower Plant project, which has secured all necessary state-level approvals, is poised to generate robust returns on an accelerated timeline. This project represents a significant opportunity for Citaglobal to expand its renewable energy footprint and contribute to Malaysia’s goal of achieving 70% renewable energy by 2050.
Leadership and Vision
Tan Sri (Dr) Mohamad Norza Zakaria, the Executive Chairman and President of Citaglobal, emphasized that this strategic move accelerates the company’s development in the clean energy segment. He highlighted the importance of this acquisition in aligning with Malaysia’s aspirations for a sustainable energy future.
Financial Overview
As of August 7, 2025, Citaglobal Berhad’s close price was 0.815 MYR, with a 52-week high of 1.1 MYR and a low of 0.65 MYR. The company boasts a market capitalization of 346,840,000 MYR and a price-to-earnings ratio of 22.06. Established in 2008, Citaglobal Berhad has been at the forefront of offshore wind power generation, providing sustainable energy solutions to meet global energy demands while minimizing environmental impacts.
Conclusion
Citaglobal Berhad’s acquisition of the two hydropower projects in Perak marks a pivotal step in its journey towards becoming a diversified renewable energy leader. By expanding into hydropower, Citaglobal not only strengthens its portfolio but also reinforces its commitment to sustainable energy development in Malaysia. This strategic move is expected to yield significant financial returns and contribute to the nation’s renewable energy goals, positioning Citaglobal as a key player in the transition to a low-carbon economy.