Mudajaya gains access to Philippines’ wind energy industry

by **Cals** Mon 28 Oct 2013, 19:36

Business & Markets 2013

Written by Jeffrey Tan of theedgemalaysia.com

Monday, 28 October 2013 18:44

KUALA LUMPUR (Oct 28): Mudajaya Group Bhd has gained access to Philippines’ wind energy industry via its wholly owned unit, which has purchased a stake in Philippines’ Amihan Energy Corporation (AEC).

In a statement to Bursa Malaysia, Mudajaya announced that it has via Mudajaya Power International Sdn Bhd (MPI) entered into a share purchase agreement with Windelsey Inc to acquire 4,000 shares of capital stock in AEC.

MPI has entered into the agreement for a cash consideration of Php26.4 million (RM1.9 million), it added.

Mudajaya said the acquisition resulted in AEC becoming a 40% owned associate of MPI.

AEC has been given the exclusive right for 25 years to explore, develop and utilise the wind energy resources within the designated contract area of 18,255 hectares situated in the province of Cebu, Philippines.

Mudajaya said the acquisition is expected to contribute positively towards the earnings and net assets of the group for the future financial years, but not in the current year.

Meanwhile, the group also said MPI had on Oct 26 this year entered into a Shareholders’ Agreement with Windelsey Inc and Visayan Wind Energy Holdings Corporation to jointly undertake a wind energy project.

“The project stipulates the development of up to 200 MW wind energy farm in the designated contract area mentioned above via AEC,” said Mudajaya.

Mudajaya said the development would be initiated through phases over the next five years with an initial development of up to 50MW.