South Korean deal to boost Tadmax’s business

South Korean deal to boost Tadmax’s business

November 14, 2017 0 By WFTV

(From left) Noel John, Tadmax Resources Bhd managing director Datuk Seri Anuar Adam, Kepco vice president and Asia business development head Kabsoon Kim, and Kepco senior manager Kwangho Cho at media briefing.

A South Korean power plant giant is set to acquire 25% equity interest in Tadmax Resources Bhd (Tadmax) through its special purpose vehicle, Tadmax Indah Power Sdn Bhd (TIP), in a move that is set to boost Tadmax’s business.

“The South Korean company, Korean Electric Power Corporation (Kepco), has already helped us since April this year before signing the joint development agreement,” Tadmax executive director Datuk Noel John at the media conference yesterday, adding that Kepco has also agreed to bear 25% of direct and external third party cost

“As a small company, Tadmax has all the ingredients that are required to stand at the same level of other experienced power plant companies — we have a competent line up of technical expertise that could bring us to become successfully established power plant company,” said Noel John.

Kepco is South Korea’s largest state-owned public utility company of which 51% of its share is owned by the government of South Korea, with assets of US$147 billion (RM615.9 million) and annual revenue of US$50 billion.

Noel John said that participation of Kepco is significant considering that it is a major international power utility presence beside Edra Power Holdings Sdn Bhd in the Malaysian Power Industry.

Tadmax made its filing to Bursa Malaysia on its deal with Kepco on Monday.

With this deal, the two companies are to develop a new 1,200MW combined cycle gas turbine (CCGT) in Pulau Indah, Selangor. The project was awarded to Tadmax by the government through the Energy Commission back in August last year.

The terms of the agreement stated that TIP will be the lead member of the consortium responsible for the negotiation of the project, and preparation and submission of the complete project proposal as well as to liaison with the authorities.

TIP will also be in charge of the engineering procurement and construction (EPC), operations and maintenance (O&M) and gas supply agreement, power purchase agreement, besides contractors and advisers.

At the same time, Kepco will provide technical reviewing of the EPC and long-term supply agreement, preparation of the O&M plan and strategy, technical assistance and consultants, and support to achieve successful financial closing.

The joint development agreement is not expected to have any effect on the share capital, shareholdings, net assets, earnings, gearing nor liabilities of Tadmax for the current financial year ending Dec 31, 2017.