KUALA LUMPUR (March 13): Tadmax Resources Bhd's wholly-owned subsidiary Pulau Indah Power Plant Sdn Bhd, which is developing the estimated RM3.3 billion 1,200 MW combined-cycle gas turbine power plant on Pulau Indah, Selangor, had today executed the engineering, procurement, construction and commissioning (EPCC) contract with the project’s contractor.

In a statement to Bursa Malaysia today, Tadmax said the contractor is an unincorporated joint venture comprising Posco Engineering & Construction Co Ltd, Mitsubishi Corp and PEC Powercon Sdn Bhd.

"The EPCC contract value forms part of the project’s total cost expected at approximately RM3.3 billion. The project will be funded by a comprehensive fund-raising exercise which will include proposed issuance of sukuk along with other banking facilities,” Tadmax said.

Tadmax said today the contractor is expected to complete the power plant by Jan 1, 2014.

In a separate statement to Bursa today, Tadmax said it had entered into a share sale agreemen with Worldwide Holdings Bhd to sell a 35% stake comprising 17.5 million shares in Pulau Indah Power Plant to Worldwide for RM58.45 million cash.

Tadmax said today the proposed disposal is in line with the Heads of Agreement (HOA) entered into by the company with Worldwide and Korea Electric Power Corp (Kepco) on Sept 14, 2018.

Tadmax said that in accordance with the HOA, Tadmax will own 40% of Pulau Indah Power Plant while Worldwide and Kepco will hold 35% and 25% respectively.

“The disposal consideration of RM58.45 million for the 35% equity interest in Pulau Indah Power Plant is based on an implied valuation of RM167 million for the entire 100% equity interest of Pulau Indah Power Plant,” Tadmax said.

Tadmax said the disposal is expected to be completed by the first half of 2020.

At Bursa today, Tadmax’s share price closed unchanged at 20 sen for a market capitalisation of RM156.66 million. Tadmax shares were traded between 18.5 sen and 20 sen today.