EDEN Enterprises (M) Bhd has proposed to acquire the Sungai Kenerong hydro power plant in Kelantan under a RM39mil deal with two vendor companies, Musteq Holdings Sdn Bhd and Projass Engineering Sdn Bhd.
The acquisition would be satisfied via the issuance of new shares and cash payment.
Eden, through its wholly-owned subsidiary Langkawi Batik Sdn Bhd (LBSB) would acquire Musteq Hydro Sdn Bhd, which operates the power plant, for RM17.134mil to be satisfied by RM10mil cash and the issuance of 7.134 million new Eden shares priced at RM1 each.
LBSB would also pay RM21.866mil to settle shareholder's advances made by the vendors to Musteq Hydro via RM11.866mil cash and the issuance of 10 million new Eden shares priced at RM1 each. Eden executive chairman Datuk Abd Rahim Mohamad said the independent power producer would expand and strengthen the company's involvement in infrastructure and power generation. It already owns the 60-megawatt Libaran Power station in Sandakan, Sabah. The hydro power plant will be providing stable source of income over the concession period of 30 years, thus contributing positively to the long-term earnings of the transformed Eden, he said.
The hydro power plant comprises two power stations, with an aggregate installed capacity of 20Mw, and three river intakes.