Tanjong: Talks to buy power plants ongoing

GAMING and power company Tanjong plc expects to conclude talks to buy two power plants in Egypt from Electricite de France (EDF) in between four and eight months, said chairman Robert Cheim Dau Meng.  

“The issue of cost is being negotiated. We do not have a firm estimate of timeline because we have just started negotiating. This sort of acquisition would typically take between four and eight months to complete if one is successful to get on from the first phase,” he said at a press conference after the company's AGM in Kuala Lumpur yesterday.  

The company would consider various financing options for the acquisition, he added.  

On Tuesday, Tanjong announced that it was in exclusive negotiations with the world’s largest and French state-owned utility to buy the Egyptian plants, which have a total capacity of 1,366 megawatts. 

Cheim said the company’s focus remained on the Middle East, as there was a lot of demand for energy in the region.  

In January, the consortium in which Tanjong is part of, won the bid for a 40% stake in a water and power project in Abu Dhabi, United Arab Emirates.  

Its investment in Tropical Islands resort in Berlin, Germany, was likely to generate returns after two or two and a half years, Cheim said.  

Robert Chiem Dau Meng

“This is a longer gestation period kind of business. We expect it to be a loss this year, but when all the infrastructure has been set up, it’ll be a growing business,” he added.  

On its number forecast operations (NFO), Cheim said the unit’s new logo and brand name – Da Ma Cai –had generated fresh interest to its products. 

“The NFO had in the past year shown positive growth. We are confident that it will continue to be positive going forward,” Cheim said.  

For the year ended Jan 31, Tanjong posted a net profit of RM392.3mil on the back of RM3bil sales, with turnover in the NFO segment growing 11.3% to RM1.7bil. 

 TANJONG :  [Stock Watch]  [News]

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