Monday 22 Apr 2024
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KUALA LUMPUR (Nov 21): Mega First Corp Bhd is increasing its shareholding in the 260MW Don Sahong hydropower project in Laos from 80% currently to 91.25%, through a US$85 million (RM396.95 mil) transaction.

The deal involves Mega First’s 56.25%-owned unit Mega Ventures Ltd (MVL) buying 20% stake in Don Sahong Power Co Ltd from EDL-Generation Public Co for US$85 million. The remaining shareholders in MVL are Laos-incorporated Lao Green Power Corp Co Ltd (25%) and British Virgin Islands-incorporated Enemax Trading Ltd (18.75%).

In a filing with Bursa Malaysia on Tuesday, Mega First said the proposed acquisition will enable it to increase its shareholding in a proven and profitable renewable energy asset. Don Sahong hydropower plant commenced operations in January 2020 and generates approximately 2,028GWh per year.

The project is operating under a 25-year concession whereby electricity generated by the hydropower plant will be sold to Electricite Du Laos, Laos (EDL) under a power purchase agreement.

The proposed acquisition is expected to complete by Dec 31, 2023, and is not subject to the approval of any regulatory authority and/or shareholders.

Shares of Mega First closed a sen or 0.3% higher at RM3.58 on Tuesday, giving it a market capitalisation of RM3.54 billion.

Edited ByKang Siew Li
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