Malakoff to acquire Khazanah’s stake in Desaru Investments

PETALING JAYA: Malakoff Corp Bhd’s indirectly-owned unit Malakoff Gulf Ltd is proposing to acquire the entire equity stake in Desaru Investments (Cayman Isl) Ltd (DIL) from Khazanah Nasional Bhd for a cash consideration of US$70mil.

Prior to the sale, Khazanah, through DIL, holds a 40% equity interest in the consortium known as Malaysian Shoaiba Consortium Sdn Bhd (MSCSB) while Malakoff, via MGL, holds 40% and Tenaga Nasional Bhd , through its subsidiary Independent Power International Ltd, holds the remaining 20% stake.

“This (acquisition) will provide an immediate earnings accretion to the company as well as an increase in cashflows, derived from the remaining contract periods of approximately ten years under both Shuaibah Water and Electricity Co Ltd’s power and water purchase agreement for the Shuaibah 3 Independent Water and Power Plant and Shuaibah Expansion Project Company’s water purchase agreement for the Shuaibah 3 Expansion Independent Water Plant,” Malakoff CEO Datuk Ahmad Fuaad Kenali said in a press release.

He added that the proposed acquisition will increase and consolidate Malakoff’s total effective generation capacity for power and water to 6,708 MW and 544,375 cubic metres/day respectively, from the existing 6,600 MW and 420,925 cubic metres/day respectively.