Genting Berhad shares on Bursa has been suspended pending this announcement, where the group through its indirect subsidiary, Genting MZW Pte Ltd, entered into a Share Sale and Purchase Agreement with Jineng International Energy Co., Ltd for the acquisition of 49% equity shares in SDIC Jineng Gas Power Generation Co., Ltd. for total purchase price of RMB100 million RM65.8 million.
SDIC Jineng (ZhouShan) Gas Power Generation Co., Ltd. is the project company established to own and develop a 2 x 745MW gas-fired power plant located at ZhouShan, Greater Shanghai Area in the Zhejiang Province, China, where SDIC Power Holdings Co., Ltd. (“SDIC Power”) is the 51% majority shareholder.
Additionaly, Genting’s another indirect subsidiary, Genting Sanyen (Malaysia) Sdn Bhd, has also signed a Heads of Agreement with SDIC Power on 20 June 2024 for the joint cooperation in the Project Company after the successful completion of the Proposed Acquisition. The Company estimates that a further pro rata equity investment of approximately RMB328 million (approximately US$46 million) will be required up to target commercial operation in 2025. The Purchase Price and Equity Investment totaling RMB428 (approximately US$60 million) will be fully funded by internally generated funds.
SDIC Power is a company established under one of the four business units of the State Development and Investment Group Co., LTD. in China. SDIC Power’s business scope covers investment, construction, development, operation and management of energy projects dominated by power generation. By the end of December 2023, SDIC Power has commissioned 40.86GW power stations, including 21.28GW hydropower, 7.04GW wind and solar power, and 12.54GW thermal power, making it the top 10 power company in China. Both have a long well-established strategic partnership going back to 2013.
The group said the project allows the parties to extend their partnership further. Genting Group started its first renewable energy project with the 91.8MW wind farm in Gujarat, India. This Project coupled with the recent investment in the 100MW Dongwu Cha Solar Plant, further demonstrate Genting Group’s commitment to transition from coal to clean energy
