KUALA LUMPUR (July 30): Tadmax Resources Bhd has signed a Memorandum of Understanding (MoU) with Selangor state-linked company Worldwide Holdings Bhd for the development of 1,000-1,200 MW combined cycle gas turbine power plant in Pulau Indah, Selangor.

In a filing with the exchange today, Tadmax said the MoU was inked on July 27, after it received a letter of intent from Worldwide dated Dec 28, 2017, expressing its intention to acquire a 30% participation in Tadmax Indah Power Sdn Bhd (TIP)’s equity.

The MoU is also in compliance with the Majlis Tindakan Ekonomi Selangor's (MTES) decision dated Dec 15 last year for a state-owned company to own an equitable shareholding in the power plant project vide TIP, Tadmax said.

Worldwide will be Tadmax’s strategic partner for the project, while its technical partner will be Korean Electric Power Corporation (KEPCO).

Under the MoU, Worldwide will leverage and participate in financing discussions with financiers, as well as provide support and coordination wherever needed for the project. 

"Subject to the Energy Commission’s prior written approval having been obtained and upon the definitive agreement having [been] executed, Worldwide intends to secure 30% equity interest in the project company, Tadmax Indah Power Sdn Bhd (TIP)," the filing said.

During project development, each party shall bear its own costs associated with the project, including in the event the parties do not proceed with the definitive agreement.

Tadmax shares closed down 4.5% today to 21 sen, for a market capitalisation of RM164.5 million.