Medco Power, MPL sign MoU on acquisition

By Romel S. Gurky

KLSE-listed firm Melewar Industrial Group Berhad (MIG) said that its subsidiary Mperial Power Ltd (MPL) had signed a memorandum of understanding (MOU) on share acquisitions with PT Medco Power Indonesia (MPI).

Based on the MoU, MPL will dispose to MPI a stake of 20 percent of Phase 1 under Siam Power Generation Public Company Limited?s (Siam Power) and 60 percent of Phase 2 under a newly incorporated company named Siam Power Phase 2 Company Limited (SPP2), the company said in a press statement on Tuesday.

MPL is a wholly-owned subsidiary of Melewar Steel Engineering Sdn Bhd, which in turn is a wholly-owned subsidiary of MIG.

MPI?s offer price for 20 percent of the shares in Phase 1 is subject to satisfactory due diligence by MPI and will be based on a valuation done by a reputable and independent party acceptable to MPI and MPL, and has to satisfy MPI?s expected rate of return.

MPI?s offer price for 60 percent of the shares in SPP2 is USD9.0 million (Purchase Price) and is based on zero debt and liabilities. The Purchase Price is subject to satisfactory due diligence by MPI. The due diligence period of sixty (60) days for SPP2 starts upon signing of the MOU.

Editing by Benget Besalicto Tnb.