Maxim sells remaining 40% stake in Pulau Indah power project for RM70m

Maxim sells remaining 40% stake in Pulau Indah power project for RM70m
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KUALA LUMPUR (Nov 27): Maxim Global Bhd, formerly known as Tadmax Resources Bhd, is disposing of its remaining 40% stake in Pulau Indah Power Plant Sdn Bhd (PIPP) to Worldwide Holdings Bhd (WHB) for RM70 million.

PIPP operates the 1,200 megawatt combined cycle gas turbine power plant project in Pulau Indah. 

In a filing with Bursa Malaysia, Maxim said it is also selling to WHB its 100% equity interest in Tadmax PMC Sdn Bhd — the project management service provider in the development of the project — for RM3 million.

WHB is a wholly-owned subsidiary of PKNS and is principally involved in property development, investment holdings, management of environmental sanitary landfill and waste treatment, utilities business and medical devices.

Post disposal, WHB's shareholding in PIPP will be increased to 75%, while the remaining 25% belongs to Korea Electric Power Corp (Kepco).  

Maxim said the disposals enable the group to focus on its core activity of property development and construction. It expects to recognise a net gain on disposal of RM28.4 million and a net inflow of RM63 million in cash, which will provide additional working capital for the group’s existing and future projects, as well as for its future investments in other complementary businesses.

Maxim’s share price closed unchanged at 31.5 sen today, bringing the group a market capitalisation of RM394.59 million. Some 14.86 million shares were traded.

S Kanagaraju