Expansion plan: Bid to boost operations
Sime raises stakes in 2 power companies
Business Times, 26 February 2004
By CHONG JIN HUN
SIME Darby Bhd has entered into a conditional share sale agreement with Tenaga Nasional Bhd for additional stakes in Port Dickson Power Bhd (PDP) and JanaUrus PDP Sdn Bhd (JPSB).
Sime is buying an additional 15 per cent and 20 per cent stakes in PDP and JPSB, respectively from Tenaga.
It told the Kuala Lumpur Stock Exchange yesterday that the total purchase will amount to RM105.5 million.
It will be financed with proceeds from Sime's medium term notes of RM500 million issued in February last year. The transaction will see Sime holding 75 per cent and 100 per cent of PDP and JPSB respectively.
Tenaga had announced last year its intention to sell its entire 20 per cent equity in PDP to the other shareholders of PDP at a price of RM 138 million.
Sime had also indicated then to Tenaga its willingness to buy 15 per cent of Tenaga's stake in the independent power producer. Sime said yesterday it would acquire PDP's 22,500 ordinary and redeemable preference shares of RM1 each out of the 30,000 shares held by Tenaga.
It will also acquire PDP's 22,455,000 subordinated unconvertible redeemable unsecured loan stocks with a nominal value of RM1 each out of 29,940,000 shares held by Tenaga and 20,000 ordinary shares of RMl each in JPSB.
PDP is licensed by the Government to supply electricity exclusively to Tenaga, while JPSB provides operational and maintenance services to PDP's power plant in Port Dickson, Negeri Sembilan.
Sime will nominate its wholly-owned subsidiary, Aspry Ventures Sdn Bhd, as the transferee of JPSB shares.
The acquisition is part of Sime's plans to expand its power operations in view of the company's emphasis on the power sector as one of its core activities.
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