Malakoff to sell off JV interest in Australia’s Macarthur Wind Farm for A$357m

TheEdge Tue, Oct 29, 2019 08:35pm - 4 years View Original


KUALA LUMPUR (Oct 29): Malakoff Corp Bhd’s unit is planning to sell its entire 50% participating interest in the unincorporated joint venture (UJV), the Macarthur Wind Farm in Australia, for A$356.85 million, cash, which will give the group a disposal gain of approximately RM546 million.

It is disposing of the stake to Megawatt Financing Pty Ltd and AMPCI Macarthur Wind (T) Pty Ltd — the trustee of AMPCI Macarthur Wind Trust.

Malakoff acquired its interest in the wind farm in June 2013 from Three River Holdings No. 2 Ltd and Meridian Energy Australia Pty Ltd, wholly-owned units of Meridian Energy Ltd, according to a statement from the group today.

The 420 megawatt wind farm is located about 16km east of the Macarthur town in southwest Victoria, Australia. In operation since January 2013, the facility comprises 140X3.0MW V112 Vestas wind turbine generators and is the largest wind farm in the southern hemisphere.

Malakoff chief executive officer Datuk Ahmad Fuaad Kenali said the proposed disposal "provides an opportunity for Malakoff to unlock the value of its investment in Macarthur Wind Farm".

"The group will continue to be on the lookout for potential power and water assets within and outside the country," he added.

The estimated gain, which is based on its audited accounts as at Dec 31, 2018, will immediately help reduce Malakoff's borrowings and gearing ratio, the statement noted.

Malakoff's shares closed unchanged at 83 sen today, valuing the company at RM4.06 billion.

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