Malaysia's Genting to sell local power business to focus abroad
Genting Bhd will dispose of their entire 97.7 per cent shareholding interests in Mastika Lagenda Sdn Bhd to 1Malaysia Development Bhd for RM2.3 billion cash.
Genting Bhd said its 97.7 per cent-owned unit, Genting Sayen Sdn Bhd, will also sell its freehold and leasehold industrial land where the power plant was located in Kuala Langat, Selangor to Tiara Tanah Sdn Bhd for RM38.8 million.
Tiara Tanah is an indirect wholly-owned unit of 1MDB. Genting Sanyen was one of the first generation independent power producers in Malaysia.
Genting Bhd said the proposed Mastika Lagenda disposal represented a good opportunity for the group to realise an immediate and attractive return on its investment in the acquiree group.
"The Mastika Lagenda disposal will also enable the our power division to focus its time and resources on developing its power generation portfolio abroad," it said.
In a separate statement, 1MDB said the acquisition was a step towards greater efficiency and a more sustainable energy, in the long-term, as power availability is critical to maintain investors' confidence and to support the economic growth of the country.
"Given its unique private-public sector dynamics, 1MDB can create new synergies and catalyse the adoption of innovations in green and sustainable technologies," it said.