Founder Group Expands Southeast Asia Presence With Proposed Acquisition of Vietnam-Based Renewable Energy Company
KUALA LUMPUR, Malaysia, Nov. 25, 2024 (GLOBE NEWSWIRE) -- Founder Group Limited (NASDAQ: FGL) (“Founder Group” or the “Company”), a leading engineering, procurement, construction, and commissioning (EPCC) solutions provider for solar photovoltaic systems in Malaysia, is pleased to announce its proposed acquisition of a majority stake in VES 1 Joint Stock Company (“VES1”), a subsidiary of VES Joint Stock Company (“VES”). VES is a pioneer in renewable energy in Vietnam, specializing in solar and wind power solutions, while VES1 focuses on developing solar energy projects across the country.
Under the terms of the proposed acquisition, Founder Group will acquire approximately 80% of the shares in VES1. VES1 is actively involved in several solar energy projects in Vietnam. Phase 1 includes solar rooftop projects with a combined capacity of 5.6MWp. Under the PPA secured by VES1, VES1 shall have a first right of refusal for in the case that the off-taker wishes to expand the solar capacity at the particular site. Based on the current assessment, VES1 shall have a first right for expansion of the solar project, totalling 50MWp installation with 60MWh energy storage in 2025, and 58MWp solar project with 50MWh energy storage in 2026. These projects will significantly enhance solar and energy storage capacity in Vietnam. The agreement also grants Founder Group exclusive rights to future rooftop solar and energy storage projects in Vietnam secured by VES1 for the next three years.
Vietnam’s strategic energy development plan for 2021-2030 aims to achieve a renewable energy share of 15-20% in the overall primary energy mix by 2030, with a long-term goal of reaching 80-85% by 2050. The solar energy systems market in Vietnam is projected to generate US$12.4 billion in revenue by 2030, with an anticipated compound annual growth rate (CAGR) of 16% from 2023 to 2030, according to Grand View Research. Furthermore, Expert Market Research forecasts that the solar energy market in Vietnam will reach 33.47 TWh by 2032, growing at a CAGR of 3.1% from 2024 to 2032.
“We are excited about the opportunity to expand our footprint in Southeast Asia through this strategic acquisition of a majority stake in VES1,” said Lee Seng Chi, Chief Executive Officer of Founder Group Limited. “VES1’s established track record in Vietnam’s growing solar energy market, combined with its pipeline of current and future projects, aligns well with our strategic objectives. This acquisition enhances our position in the renewable energy sector and provides us with exclusive access to key opportunities in rooftop solar and energy storage, further advancing our commitment to sustainable energy solutions.”
“We look forward to working together with Founder Group to advance our renewable energy solutions and improve our business sustainability. We will continue to deliver a range of renewable energy projects and strive to make a significant contribution to Vietnam’s strategic energy development plan,” said Andy Nguyen, Chairman and Founder of VES Joint Stock Company.
About Founder Group Limited
Founder Group Limited is a pure-play, end-to-end EPCC solutions provider for solar PV facilities in Malaysia. The company’s primary focus is on two key segments: large-scale solar projects and commercial and industrial (C&I) solar projects. The company’s mission is to provide customers with innovative solar installation services, promote eco-friendly resources and achieve carbon-neutrality.
For more information on the Company, please visit .
About VES Joint Stock Company
VES is a leading pioneer in Vietnam's renewable energy sector, specializing in the development, installation, and management of solar and wind power solutions. With over seven years of experience, VES has successfully delivered a range of renewable energy projects, including solar and wind power installations for major clients such as the Vietnam Navy, Vietnam Electricity (EVN), and the German Government’s Clean Energy Program.
VES works with top-tier international partners such as IBC Solar (Germany) and Libra Energy BV (Netherlands) to promote sustainable energy solutions across Vietnam. Committed to advancing clean energy, VES plays a key role in driving the country’s transition to renewable resources and supporting the global goal of achieving carbon neutrality.
For more information on the Company, please visit .
Safe Harbor Statement
This press release contains forward-looking statements that reflect our current expectations and views of future events. Known and unknown risks, uncertainties and other factors, including those listed under “Risk Factors” in the Company’s filings with the U.S. Securities and Exchange Commission, may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You can identify some of these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements involve various risks and uncertainties. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. We qualify all of our forward-looking statements by these cautionary statements.
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