KUALA LUMPUR: JAKS Resources Bhd is roping in China’s Meiya Power (HD) Ltd and Island Circle Investment Holding Ltd as joint venture (JV) partners in its coal-fired thermal power plant project in Vietnam.
Meiya Power is an indirect subsidiary of China Guangdong Nuclear Power Holding Corp while Island Circle is a wholly-owned subsidiary of Island Circle Development (M) Sdn Bhd.
In a filing with Bursa Malaysia yesterday, JAKS said the proposed JV would be facilitated by a shares sale in a subsidiary, and two shareholder agreements.
At present, JAKS’ wholly-owned unit JAKS Power Holding Ltd wholly owns JAKS-MPC (HD) Ltd and JAKS Pacific Power Ltd.
JAKS Pacific Power is the holding company for JAKS Hai Duong Power Ltd which is licensed by the Vietnam government to undertake the design, engineering, construction, operation and maintenance of the 2 x 600MW coal-fired thermal power plant in the Hai Duong Province.
On Jan 6, JAKS Power entered into an agreement to divest a 50% stake in JAKS-MPC to Meiya Power for US$5 million (RM15.8 million) cash.
JAKS-MPC and Island Circle will respectively subscribe for an 80% and 10% equity interest in JAKS Power for HK$800 (RM324.90) and HK$100 cash respectively.
Upon completion of the proposed JV, the effective interest of JAKS Power, Meiya Power and Island Circle in JAKS Pacific Power would be 50%, 40% and 10% respectively.
Simultaneously, JAKS Power, Meiya Power and JAKS-MPC will enter into a shareholders’ agreement to regulate their relationship as shareholders of JAKS-MPC, as will JAKS Power, JAKS-MPC, Island Circle and JAKS Pacific Power.
“The agreements were entered into to formalise the entry of Meiya Power and Island Circle as equity partners in the proposed joint venture,” JAKS said in its announcement to the local bourse.
JAKS said the proposed JV would enhance JAKS Pacific Power’s ability to raise funds for the projects.
“The proposed joint venture will also provide JAKS an opportunity to gain expertise and generate opportunities for transfer of technology from its partners in operating and maintaining the power plant,” the company said.
The proposed JV is subject to shareholders’ approval at a forthcoming EGM, JAKS said.
According to JAKS, it had invested about US$26.8 million in the project up until Oct 31, 2011.
Trading in JAKS shares was suspended from 10.10am pending this announcement late yesterday. Over the last two trading days, its stock was heavily traded while its share price rose 12.38% from 56.5 sen on Jan 5 to 63.5 sen yesterday prior to the suspension.
Trading in JAKS shares resumes today.
This article appeared in The Edge Financial Daily, January 10, 2012.
Meiya Power is an indirect subsidiary of China Guangdong Nuclear Power Holding Corp while Island Circle is a wholly-owned subsidiary of Island Circle Development (M) Sdn Bhd.
In a filing with Bursa Malaysia yesterday, JAKS said the proposed JV would be facilitated by a shares sale in a subsidiary, and two shareholder agreements.
At present, JAKS’ wholly-owned unit JAKS Power Holding Ltd wholly owns JAKS-MPC (HD) Ltd and JAKS Pacific Power Ltd.
JAKS Pacific Power is the holding company for JAKS Hai Duong Power Ltd which is licensed by the Vietnam government to undertake the design, engineering, construction, operation and maintenance of the 2 x 600MW coal-fired thermal power plant in the Hai Duong Province.
On Jan 6, JAKS Power entered into an agreement to divest a 50% stake in JAKS-MPC to Meiya Power for US$5 million (RM15.8 million) cash.
JAKS-MPC and Island Circle will respectively subscribe for an 80% and 10% equity interest in JAKS Power for HK$800 (RM324.90) and HK$100 cash respectively.
Upon completion of the proposed JV, the effective interest of JAKS Power, Meiya Power and Island Circle in JAKS Pacific Power would be 50%, 40% and 10% respectively.
Simultaneously, JAKS Power, Meiya Power and JAKS-MPC will enter into a shareholders’ agreement to regulate their relationship as shareholders of JAKS-MPC, as will JAKS Power, JAKS-MPC, Island Circle and JAKS Pacific Power.
“The agreements were entered into to formalise the entry of Meiya Power and Island Circle as equity partners in the proposed joint venture,” JAKS said in its announcement to the local bourse.
JAKS said the proposed JV would enhance JAKS Pacific Power’s ability to raise funds for the projects.
“The proposed joint venture will also provide JAKS an opportunity to gain expertise and generate opportunities for transfer of technology from its partners in operating and maintaining the power plant,” the company said.
The proposed JV is subject to shareholders’ approval at a forthcoming EGM, JAKS said.
According to JAKS, it had invested about US$26.8 million in the project up until Oct 31, 2011.
Trading in JAKS shares was suspended from 10.10am pending this announcement late yesterday. Over the last two trading days, its stock was heavily traded while its share price rose 12.38% from 56.5 sen on Jan 5 to 63.5 sen yesterday prior to the suspension.
Trading in JAKS shares resumes today.
This article appeared in The Edge Financial Daily, January 10, 2012.
