By Sharen Kaur
sharen@nstp.com.my
Published in NST on August 31, 2012
The Selangor State Development Corp (PKNS) has been approached by foreign investors to buy its stake in power producer Genting Sanyen Power (GSP) Sdn Bhd for around RM900 million to RM1 billion.
It is learnt that the management of PKNS, led by general manager Othman Omar, will bring up the matter to its board of directors.
The Selangor state investment arm has a 25 per cent interest in GSP via Worldwide Holdings Bhd.
Genting Bhd holds the balance of 75 per cent stake in GSP through its 97.7 per cent-owned Mastika Lagenda Sdn Bhd.
The power and gaming group announced recently it was selling its entire GSP stake to 1Malaysia Development Bhd (1MDB) for RM2.3 billion cash.
When contacted, Othman told Business Times that PKNS had been approached by foreign investors for its stake and negotiations are ongoing.
"We are not in a hurry to sell our stake but this is an investment. If the price is right, we will consider selling. As an investor, there will always be an exit strategy and we will find other things to do," he said.
Othman said GSP is providing a steady source of recurring revenue for PKNS and the investment is expected to continue to contribute significantly to its bottom line.
Based on PKNS' website, the group's investment in GSP was the major contributor to its profitability in 2006.
The share of results in GSP, after tax, amounted to RM48.9 million, an increase of 18 per cent over 2005.
GSP operates a 720 megawatts gas-fired combined cycle power plant located within the Genting Sanyen Industrial Complex in Kuala Langat, Selangor, under a build-own-operate basis.
The plant began commercial operations in 1995 and supplies electricity to Tenaga Nasional Bhd under a 21-year power purchase agreement (PPA) that expires in February 2016.
GSP had submitted a bid to the Energy Commission under the "Track 2 Renewal of Existing Power Generation Facility" process, proposing a 10-year extension to the PPA based on a set of proposed terms.
Othman also said PKNS has new property developments in the Klang Valley that will boast an estimated gross development value of about RM16 billion.
"That will keep us busy for the next seven to 10 years while we source for new investments," he added.
sharen@nstp.com.my
Published in NST on August 31, 2012
The Selangor state investment arm has a 25 per cent interest in Genting Sanyen Power via Worldwide Holdings Bhd.
It is learnt that the management of PKNS, led by general manager Othman Omar, will bring up the matter to its board of directors.
The Selangor state investment arm has a 25 per cent interest in GSP via Worldwide Holdings Bhd.
Genting Bhd holds the balance of 75 per cent stake in GSP through its 97.7 per cent-owned Mastika Lagenda Sdn Bhd.
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When contacted, Othman told Business Times that PKNS had been approached by foreign investors for its stake and negotiations are ongoing.
"We are not in a hurry to sell our stake but this is an investment. If the price is right, we will consider selling. As an investor, there will always be an exit strategy and we will find other things to do," he said.
Othman said GSP is providing a steady source of recurring revenue for PKNS and the investment is expected to continue to contribute significantly to its bottom line.
Based on PKNS' website, the group's investment in GSP was the major contributor to its profitability in 2006.
The share of results in GSP, after tax, amounted to RM48.9 million, an increase of 18 per cent over 2005.
GSP operates a 720 megawatts gas-fired combined cycle power plant located within the Genting Sanyen Industrial Complex in Kuala Langat, Selangor, under a build-own-operate basis.
The plant began commercial operations in 1995 and supplies electricity to Tenaga Nasional Bhd under a 21-year power purchase agreement (PPA) that expires in February 2016.
GSP had submitted a bid to the Energy Commission under the "Track 2 Renewal of Existing Power Generation Facility" process, proposing a 10-year extension to the PPA based on a set of proposed terms.
Othman also said PKNS has new property developments in the Klang Valley that will boast an estimated gross development value of about RM16 billion.
"That will keep us busy for the next seven to 10 years while we source for new investments," he added.
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