Wong & Partners, a member firm of Baker & McKenzie International in Malaysia, advised Malakoff Corporation Berhad (Malakoff), Malaysia's largest independent power producer (IPP), on two agreements with Sime Darby Energy Sdn. Bhd. (Sime Darby Energy), for the acquisition of Sime Darby Berhad's Malaysian power business.
Malakoff, through its wholly owned subsidiary, Hypergantic Sdn. Bhd., will purchase 75 percent equity interest in Port Dickson Power Berhad (PDP), which it does not already own, from Sime Darby Energy. Simultaneously, Malakoff Power Berhad, a wholly owned subsidiary of Malakoff that is principally involved in the operations and maintenance of power plants, will also acquire the operations and maintenance business relating to PDP’s power plant by purchasing the entire issued and paid-up share capital of Sime Darby Biofuels Sdn. Bhd.
PDP is a 440 MW gas-fired open cycle power plant located on a 67-acre site in Tanjung Gemuk, Port Dickson, Negeri Sembilan, and is a licensed IPP that operates under a ‘build, own and operate’ basis. The gas-fired power plant commenced commercial operations in 1995 and supplies electric power to Tenaga Nasional Berhad for peaking and emergency requirements.
Munir Abdul Aziz, partner in the Firm’s corporate and commercial practice, led the team on the deal. He was assisted by associates Cindy Sek and Caryna Koh.
"We are very pleased to have acted again for Malakoff Corporation Berhad in connection with a major acquisition. This deal involved two very significant companies, which are part of listed public company groups, each of which placed a great deal of emphasis on negotiating terms in their respective best interests. It has been fascinating to be intrinsically involved in a deal between such evenly matched parties, and assisting in the negotiation and conclusion of its terms," said Munir.
The latest Malaysia Power Report Q2 2014 by Business Monitor International forecasted a positive long-term outlook, as it expects economic growth, positive demographics, and an improving business environment to drive growth in electricity generation and consumption at an average of 4.5 percent per annum between 2014 and 2023.
Malakoff is an independent Water and Power Producer (IWPP) with core focus on power generation, water desalination, and operations and maintenance services, and a subsidiary of MMC Corporation Berhad.
