MY Digest: Govt opposes Maju’s PLUS acquisition, Malakoff buys 40% of Shoaiba Consortium

Petaling Jaya, Malaysia. Photo by nik radzi on Unsplash

Malaysia’s Ministry of Finance (MoF) has opposed the takeover of highway operator PLUS Malaysia by Maju Holdings. In a separate development, Malakoff Corp is acquiring a 40 per cent stake in Khazanah-owned Shoaiba Consortium for $70 million (MYR 288.08 million).

Malaysia’s govt opposes PLUS acquisition by Maju

The government of Malaysia, through its Ministry of Finance (MoF), has made a preliminary decision to oppose Maju Holdings Sdn Bhd’s takeover of highway operator PLUS Malaysia Bhd.

The early decision comes in after taking into consideration the views of PLUS’ existing shareholders, Khazanah Nasional Bhd and Employees Provident Fund (EPF), reported by The Edge.

However, the government will still hold a meeting with the Maju Holdings management team to discuss its new acquisition offer, which is expected to be different from the original one.

Work Minister Baru Bian confirmed that the government has received the new proposal from Maju Holdings, but said is yet to study it and make a recommendation to the Cabinet.

Malakoff acquires 40% in Shoaiba Consortium for $70m

Malaysia-based Malakoff Corp Bhd is acquiring a 40 per cent stake in Shoaiba Consortium Sdn Bhd, owned by Khazanah Nasional Bhd, for $70 million (MYR 288.08 million), according to a report filed by The Edge.

Malakoff has signed a share sale agreement with Khazanah, through its wholly-owned unit Malakoff Gulf, to acquire the entire stake in Desaru Investments (Cayman Island), which owns 40 per cent in Shoaiba Consortium.

Malakoff already owns 40 per cent in Shoaiba Consortium, while Tenaga Nasional Bhd holds another 20 per cent. Shoaiba Consortium owns and operates three independent water and power water plants in Saudi Arabia.

According to the report, Malakoff will be using its internal accruals to fund the deal. The proposed acquisition is conducted in line with the company’s growth strategy as it will increase and consolidate its total effective generation capacity for power and water output.