Malakoff pays US$70m for Desaru Investments

PETALING JAYA: Malakoff Corp Bhd is acquiring the entire stake in Desaru Investments (Cayman Isl.) Lte (DIL) from Khazanah Nasional Bhd for US$70 million (RM289 million).

“This will provide immediate earnings accretion to the company as well as increase in cashflows, derived from the remaining contract periods of approximately ten years under both Shuaibah Water & Electricity Co Ltd’s (SWEC) power and water purchase agreement (PWPA) for Shuaibah 3 independent water and power plant (SIWPP) and Shuaibah Expansion Project Company’s (SEPCO) water purchase agreement for Shuaibah 3 expansion in-dependent water plant (SEIWP),” said its CEO Datuk Ahmad Fuaad Kenali in a statement.

The proposed acquisition will also increase and consolidate Malakoff’s total effective generation capacity for power and water to 6,708 MW and 544,375 m3 /day respectively, from the existing 6,600 MW and 420,925 m3 /day respectively.