Malaysia's Malakoff plans to add power plant

KUALA LUMPUR -- Malaysia's second-biggest power producer Malakoff Bhd said it has agreed to study the viability of investing in a proposed $1.84 billion power plant in southern Malaysia.

Malakoff said it would buy a minimum 60 percent stake in the power plant, pending a feasibility study and terms and conditions to be agreed.

Privately held SKS Power Sdn Bhd is developing a 2,100-megawatt coal-fired plant in Tanjung Bin in Johor state bordering Singapore.

Malakoff also said that the government had on Tuesday allowed the company to buy 60 percent of SKS Power.

"The signing of the memorandum of understanding...is to facilitate the provision of all information and documents relevant and necessary for Malakoff to consider the viability of investing in SKS Power," it told the stock exchange.

SKS Power is part of SKS Ventures Sdn Bhd, which is led by businessman Syed Mokhtar AlBukhary. Syed Mokhtar already controls Malakoff, the country's second-largest power firm in terms of generation capacity.

The politically well-connected businessman also controls the fast-growing Port of Tanjung Pelepas, which is next to the power plant.

Reuters