KUALA LUMPUR, 7 March 2012: 1Malaysia Development Bhd (1MDB) is acquiring Tanjong Energy Holdings Sdn Bhd (“TEHSB”) as a long term strategic investment.
1MDB signed a definitive agreement last Friday on the equity purchase for RM8.5 billion. The transaction is subject to customary financing and regulatory approvals.
1MDB CEO Shahrol Halmi said: “The acquisition signals the first step towards fulfilling 1MDB’s strategic intent towards fulfilling the country’s long-term energy security.”
Shahrol said: “Energy is one of the core focus areas for 1MDB, and TEHSB is a prized acquisition. We are attracted to the strong operating track record of TEHSB, its well-diversified portfolio of quality assets, its strong in-house capabilities and the potential for new growth both here and abroad”.
“Given its unique private-public sector dynamics, 1MDB and TEHSB are in a strong position to create new synergies, establish global strategic partnerships and promote innovations in green and sustainable technologies,” Shahrol said.
1MDB aims to further enhance the capacity of TEHSB as a leading emerging market independent power producer. TEHSB is led by an experienced, Malaysia-based management team. The company maintains strong key relationships and deep understanding of local cultures and business practices in its various markets.
Shahrol said: “We have full confidence in TEHSB’s management team and its staff.”
Goldman Sachs (Malaysia) Sdn Bhd has been engaged to act as financial advisor to 1MDB for this transaction.