Seal shareholders urged to approve RM58.72 million guarantee for associate
The proposed guarantee would support MSR Green Energy’s financing without requiring Seal to inject cash or equity, according to its independent adviser.
UOB Kay Hian (M) Sdn Bhd has recommended that Seal Incorporated Bhd’s non-interested shareholders approve a proposed RM58.72 million corporate guarantee supporting associate MSR Green Energy Sdn Bhd (MSRGE) as it works to complete solar projects.
Seal disclosed the adviser’s assessment in an Oct 2 bourse filing. UOB Kay Hian considered the proposal fair and reasonable, with no detriment to minority shareholders. Shareholders will consider it at an extraordinary general meeting in Petaling Jaya on Oct 21.
According to the adviser, the guarantee would give MSRGE access to banking facilities while preserving Seal’s working capital, as Seal would not need to contribute cash or equity directly.
The proposal covers existing banking and foreign exchange facilities worth RM13.79 million. It also includes new facilities comprising RM44.19 million in bank guarantees and a RM740,000 term loan.
MSRGE is seeking funding as its renewable energy project portfolio expands. Its ongoing work includes Kandis/Bachok LSS5+ in Kelantan, valued at RM600.32 million, alongside battery energy storage system projects in Sabah and Santong, Terengganu, worth RM644.63 million and RM306.36 million respectively.
Seal entered renewable energy through investments in MSRGE, which undertakes engineering, procurement, construction and commissioning work for solar and energy storage systems. Seal’s stake rose from 20% to 30% in March 2025 before being diluted to 24.55% on June 30 following KVC Corporation Sdn Bhd’s conversion of redeemable convertible preference shares.
UOB Kay Hian also cited MSRGE’s earnings performance. It said adjusted profit after tax reached RM38.16 million ahead of schedule, surpassing the RM21 million profit guarantee for FY2024-FY2025.
