Selangor state-linked fim Worldwide Holdings Bhd is looking to secure a 30% stake in a directly negotiated power plant project to be developed in Pulau Indah, Selangor, by Tadmax Bhd.
The announcement comes after Energy, Green Technology, Science and Climate Change Minister Yeo Bee Yin said recently that the government will scrap four new independent power producer contracts which were awarded directly. She declined to name the companies involved in the projects but stated that one of them was a public listed company.
Tadmax told Bursa Malaysia today that the group entered into a memorandum of understanding (MoU) on July 27 with Worldwide Holdings, which is involved in property, environmental management services, investment holding as well as medical device manufacturing.
Tadmax said subject to the Energy Commission’s prior written approval being obtained and upon the definitive agreement having executed, Worldwide Holdings intends to secure a 30% stake in the project company known as Tadmax Indah Power Sdn Bhd (TIP).
Worldwide Holdings will offer its services as a strategic partner of the project by participating in financing discussion with the financiers and/or financial institutions as well as providing support and coordination for the project.
Tadmax said during this phase of project development, each party will bear its own costs associated with the project, including in the event that the parties do not proceed with the definitive agreement.
“The collaboration on TIP’s equity in the MoU between Tadmax and Worldwide Holdings is subject to and to be in accordance with the state of Selangor’s directives. This MoU may lead to a shareholders’ agreement between the parties.”
Last November, Tadmax inked a joint development agreement (JDA) with Korea Electric Power Corp (Kepco) for the power plant project following Tenaga Nasional Bhd’s pull-out from the deal. Kepco has expressed its intention to acquire 25% equity interest in TIP upon the successful implementation of the JDA.
Tadmax and Kepco’s role is to negotiate the engineering, procurement and construction contract, operations and maintenance contract, gas supply agreement, power purchase agreement together with Worldwide Holdings.
On Bursa Malaysia today, Tadmax fell 1 sen or 4.5% to 21 sen on 89,000 shares done.