Malakoff buying into Malaysian firms to grow renewables ops

Malaysian energy group Malakoff Corp Bhd (KLSE:MALAKOF) has sealed a conditional deal to acquire stakes in two domestic companies, thus boosting its effective renewable energy capacity to 128 MW.

According to a bourse filing from Friday, Malakoff will pay Zelleco Engineering Sdn Bhd MYR 27 million (USD 5.7m/EUR 5.3m) for the two stakes.

Specifically, Malakoff will acquire a 51% stake in ZEC Solar Sdn Bhd, a Malaysian solar developer and electricity retailer which owns a 29-MW photovoltaic (PV) project in the Kota Tinggi District of Johor state. The scheme was among the winners in the first round of Malaysia’s large-scale solar programme and has a 21-year power purchase (PPA) in place through 2040.

The proposed purchase of 22.4 million ordinary shares of ZEC Solar will entitle Malakoff to a roughly 15 MW ownership in the PV project.

Additionally, the energy major will buy 49% of power plant operator and electricity producer TJZ Suria Sdn Bhd by taking hold of 49,000 of its ordinary stock. The company is handling the operations and maintenance (O&M) of the ZEC Solar PV farm under a 21-year contract.

Once the deals are finalised, ZEC Solar and TJZ Suria will become direct and indirect subsidiaries of Malakoff, respectively.

(MYR 1.0 = USD 0.212/EUR 0.196)

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