Malakoff rises 2.33% on taking 100% equity in solar plant, DRB-Hicom dips on pulling out from project

Malakoff rises 2.33% on taking 100% equity in solar plant, DRB-Hicom dips on pulling out from project
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KUALA LUMPUR (Feb 17): Shares of Malakoff Corporation Bhd and DRB-Hicom Bhd moved in opposing directions after DRB-Hicom withdrew from the consortium formed to develop a large-scale solar photovoltaic plant in Tanjung Malim, Perak. The other member of the consortium is Malakoff Corp Bhd.

At 9.23am, Malakoff rose 3 sen to RM1.32 with 372,400 shares traded.

Meanwhile, DRB-Hicom fell 1.54% or 2 sen to RM1.28 with 433,900 shares traded.

The two consortium members were unable to reach mutual agreement on certain terms and conditions of the joint venture, DRB-Hicom said in a filing with Bursa Malaysia.

Malakoff held a 51% stake in the consortium while DRB-Hicom controlled the remaining 49% through its wholly-owned unit, DRB-Hicom Environmental Services Sdn Bhd (DHES).

DHES is wholly owned by Alam Flora Sdn Bhd, which in turn is a 97.37%-owned subsidiary of Hicom Holdings Bhd, a wholly-owned subsidiary of DRB-Hicom.

The consortium received a letter of acceptance from the Energy Commission in December 2016 to build the 50MW plant on a 200-acre (80.94ha) plot of land, following a bidding exercise.

Commercial operation was scheduled to start in July 2018 for a term of 21 years.

In a separate filing with the bourse, Malakoff said with DHES’s withdrawal, it will undertake 100% equity interest in the project.