Malakoff to further delay IPO to 2015, says IFR report

by **Cals** Thu 06 Mar 2014, 17:22

Business & Markets 2014

Written by Charlotte Chong of theedgemalaysia.com

Thursday, 06 March 2014 10:05

KUALA LUMPUR: Power producer Malakoff Bhd is expected to defer further its proposed listing on Bursa Malaysia to 2015 as one of its power plants is yet to be fully operational, according to a report by International Financing Review.

This will be the second time the company has postponed its listing, after the approval of its initial public offering (IPO) lapsed in September last year.

It has been reported that delays in the ongoing maintenance work at the 2,100MW coal-fired Tanjung Bin power plant in Johor have resulted in the postponement.

The group had missed an estimated RM200 million or more in terms of capacity payments from Tenaga Nasional Bhd after its Tanjung Bin coal-fired plant failed to maintain the required capacity.

Malakoff, an independent power producer, has been granted the rights to construct, own and operate the coal-fired power plant in Johor for 25 years. The concession expires on Sept 27, 2031.

The utility firm is 51% owned by MMC Corp Bhd, which is controlled by Tan Sri Syed Mokhtar Al-Bukhary.

Recently, the group failed to secure the 2,000MW coal-fired power plant project, known as Project 3B, from the Energy Commission. Government-owned 1Malaysia Development Bhd has won the lucrative project.

It was earlier reported that MMC intended to relist Malakoff, purportedly to be in the region of US$1 billion (RM3.28 billion), after taking into consideration its recent developments including the acquisition of Meridian Wind Macarthur Holdings Pte Ltd and the maintenance work at the Tanjung Bin power plant.

MMC had borrowings of RM23.98 billion (short-term and long-term borrowings) and cash and cash equivalents of RM4.33 billion as at Dec 31 last year.

However, RAM Rating Services Bhd has an AA2 long-term rating on Tanjung Bin Power Sdn Bhd’s sukuk ijarah programme of up to RM4.5 billion in nominal value (2012/2029) with a “stable” outlook.

This article first appeared in The Edge Financial Daily, on March 06, 2014.