KUALA LUMPUR: Malakoff Corp Bhd (Malakoff) has entered into an agreement with Zalleco Engineering Sdn Bhd to acquire 22.39 million shares, or a 51 per cent stake in ZEC Solar Sdn Bhd, and a 49 per cent interest in TJZ Suria Sdn Bhd.
The company said the acquisition is expected to increase Malakoff's effective capacity to 128 megawatts (MW) in the renewable energy (RE) sector and optimise operating costs through resource synergies, resulting in economies of scale.
ZEC Solar is the owner and developer of the large-scale solar (LSS) facility with a capacity of 29 MW, located in Kota Tinggi, Johor, under the LSS programme with a 21-year Solar Power Purchase Agreement (SPPA) effective until 2040.
ZEC Solar won the project through the first round of LSS competitive tendering issued by the Energy Commission (EC).
"This expansion will significantly enhance Malakoff's technical capabilities and provide a reference plant to meet the requirements of future LSS bidding exercises, both domestically and internationally.
"Last year, we made substantial progress in growing our RE portfolio. We ventured into hydropower by partially financing the rising promenade Hydro's Sungai Galas Project, with a capacity of 84 MW.
"Additionally, we secured SPPAs with major industry players such as DRB-HICOM Group of Companies, UMW Group of Companies, Railway Assets Corporation, and Keretapi Tanah Melayu Berhad (KTMB).
"Leveraging the Corporate Green Power Programme (CGPP), we entered into a strategic partnership with MMC Ports to develop 500 MW of solar projects within the Albukhary Group of Companies," said Malakoff managing director and group chief executive officer Anwar Syahrin Abdul Ajib in a statement.
To date, through its newly established business pillar, Malakoff Green Solutions, Malakoff's RE portfolio stands at 168 MW, ranging from the implementation of LSS and rooftop solar projects to small hydropower generation as well as the installation of carbon-free mobility infrastructure.
All these initiatives further reinforce the group's commitment to 'Enhancing Life, Enriching Communities'.