KUALA LUMPUR: Genting Bhd
via its indirect subsidiary Genting MZW Pte Ltd has struck a deal to acquire a 49% stake in a 2 X 745MW gas-fired power plant in Zhoushan Greater Shanghai Area in Zhejiang, China, for RMB100mil (RM64.87mil).
In a statement, the group said Genting MZW had entered into a share sale and purchase agreement with Jineng International Energy Co Ltd for its stake in SDIC Jineng (Zhoushan) Gas Power Generation Co Ltd, the project company established to own and develop the power plant.
The remaining 51% equity in the joint venture is owned by SDIC Power Holdings Co Ltd, a sub-unit of China's State Development and Investment Group Co Ltd.
According to Genting, the project is one of the three key H class projects listed in the 14th five-Year Plan of Zhejiang to support the energy needs of the province.
It uses H class gas turbine manufactured by GE Vernova Inc. which is the most efficient gas turbine in the world and the project is expected to be the first H class unit to operate within Zhejiang Province when it achieves commercial operation in Q425.
Construction works on the project began in 4Q23, and so far, there has been 10% overall progress.
Meanwhile, another Genting indirect subsidiary, Genting Sanyen (Malaysia) Sdn Bhd, has inked a heads of agreement with SDIC Power to cooperate in the project company following a successful acquisition.
Genting estimates it will need to inject an additional pro rata equity investment of about RMB328mil leading up to the targeted start of commercial operations in 2025.
It said the purchase price and equity investment totaling RMB428mil will be fully funded by internally generated funds.
Genting Group and SDIC Power have a well-established partnership going back to 2013, and are joint venture partners in coal-fired and solar power plant projects in China and Indonesia.
