1MDB buys Jimah power assets for RM1.2b

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KUALA LUMPUR (July 5): 1MDB (1Malaysia Development Bhd) announced it has entered into a conditional share agreement to acquire Jimah Teknik Sdn Bhd and Jimah O & M Sdn Bhd for RM1.2 billion.The acquisition is supported by Jimah's strong cash flows, backed by a 25-year PPA expiring in 2033, IMDB said.“1MDB completed a comprehensive due diligence exercise on the assets and reached an agreement with the vendors on a willing buyer and seller basis,” a statement from 1MDB said.In this transaction, 1MDB will acquire a 75% stake in Jimah Energy Ventures Holdings Sdn Bhd, the principle asset of which is the 1,400 MW coal-fired Jimah power plant in Negeri Sembilan.“The acquisition diversifies 1MDB’s energy generation capacity and brings along highly experienced and credible management in coal-fired power plant operation, enhancing potential for further development opportunities in the sector,” 1MDB said.This represents 1MDB’s next step towards more sustainable energy security in the long term, to support the continued economic growth of the country, the company said.1MDB is a government-owned strategic development company that aims to help transform Malaysia into a thriving economy.