Wong & Partners, a member firm of Baker & McKenzie International in Malaysia, advised 1Malaysia Development Bhd. ("1MDB") on its RM1.225 billion acquisition of a 75 percent stake in the company that owns the Jimah power plant, an independent power producer ("IPP"), and 100 percent of the company providing operation and maintenance services to the power plant.

The 1,400 MW coal-fired  power plant located near Port Dickson, Negeri Sembilan is owned by Jimah Energy Ventures Sdn. Bhd., a joint venture between Jimah Teknik Sdn. Bhd., Jimah O&M Sdn. Bhd., Tenaga Nasional Bhd. ("TNB") and the Negeri Sembilan state government. 1MDB acquired Jimah Teknik and Jimah O&M, which together hold 75% of Jimah Energy Ventures – TNB and the state government own 20 percent and 5 percent respectively. Jimah O&M also provides operation and maintenance services  to the power plant.

This is 1MDB's third acquisition of power generation assets and part of its plan is to establish sustainable energy security to support the country's economic growth in the long term.

Wong & Partners' corporate team advised on the merger and acquisition (M&A) aspects of the transaction and was jointly led by partners Brian Chia and Azizul Azmi Adnan and supported by associates Adrian Wong, Caryna Koh and Serene Kan.

The finance team, led by partner Mark Lim, advised on the financing of the acquisition via a term loan facility of up to RM600 million made available by AmBank (M) Bhd. to 1MDB Energy (Jimah) Sdn. Bhd., a wholly-owned subsidiary of 1MDB. Lim was assisted by senior associate Licia Tan and associate Adelene Teo.

"It was a pleasure working with the 1MDB team and we are privileged to have had the opportunity to represent 1MDB on this transaction," said Chia, who heads the Corporate and Commercial practice.

Lim, who heads the Finance and Projects practice, said, "The finance and corporate teams worked closely together on this deal and we are very pleased with the successful outcome."

Commenting on the deal, a 1MDB representative said, "We would like to thank Wong & Partners for working with us on this important transaction. Their input, in particular their experience in M&A, the energy industry and financing facilities, proved to be important in shaping and concluding the transaction and we appreciate the commitment put in by the entire team."

1MDB is a strategic development company wholly-owned by the government of Malaysia, and has businesses in property development and power generation. In 2012, it acquired Tanjong Energy Holdings Sdn. Bhd. (now known as Powertek Energy Sdn. Bhd.) and a 75% stake in Genting Sanyen Power Sdn. Bhd. (now known as Kuala Langat Power Plant Sdn. Bhd.). It is currently the second largest IPP in Malaysia in terms of power generation capacity.