International Power Interest in Kapar Power Station, Malaysia
Malakoff Bhd announced on 31st July that it will acquire from Tenaga Nasional Bhd (TNB) a 40% ownership interest in the Kapar Power Station, a 2420MW multi- fuelled thermal power plant 55km west of Kuala Lumpur. International Power, which will be the new name for National Power's international business following its proposed demerger, will participate in the ownership of Kapar indirectly through its c. 20% equity interest in Malakoff.
International Power's original intention had been to acquire a 20% equity interest in Kapar directly from TNB, with Malakoff taking another 20%. However International Power was not able to agree the terms of the proposed debt facility in the context of the risk associated with subsequent refinancing. This has resulted in a restructuring of the project such that International Power's 20% will be taken up by Malakoff, and International Power's investment in the project will be indirect via Malakoff.
David Crane, the Chief Operating Office designate of International Power, said "We believe Kapar is the crown jewel of Tenaga's generating assets and we are very enthusiastic about our participation in its ownership. We believe investing in Kapar exclusively through Malakoff is in the best interests of our shareholders. We look forward to contributing to the success of Kapar, and to other opportunities in Malaysia through our strategic alliance with Malakoff".
National Power has announced plans to demerge into two independent companies in October 2000. International Power, comprising National Power's international portfolio and one plant in the UK, would be established as one of the world's largest independent power producers with interests in over 15,500MW of operating power plant and 4,500MW of plant under construction.
|Morgan Bone, Finsbury
||020 7251 3801
|Simon Pinnell, International Power