22/11/2023 (Kuala Lumpur, Malaysia) - Mega First Corporation Bhd has set its sights on boosting its investment in renewable energy by acquiring an additional 20 percent equity interest in Don Sahong Power Co Ltd (DSPC). The deal, valued at US$85 million, involves the purchase of 3.38 million ordinary shares. This strategic move was detailed in a statement to Bursa Malaysia on Tuesday.
The transaction is facilitated through Mega First's subsidiary, Mega Ventures Ltd, which has entered into a share transfer agreement with the vendor and stakeholder EDL-Generation Public Co. The focus of this acquisition is the Don Sahong Hydro Power Plant in Laos, which is operated by DSPC. EDL-Generation Public Co's primary activities include generating and selling electricity, investing in power generation assets, and providing operational and maintenance services to these assets.
Mega First emphasized the advantages of this acquisition, stating, "This proposed purchase will enable Mega First to increase its shareholding in a proven and profitable renewable energy asset." Upon completion, Mega First's stake in DSPC will rise from 80 percent to a commanding 91.25 percent.
The deal is anticipated to be finalized by December 31, 2023, marking a significant enhancement in Mega First's commitment to renewable energy and its expansion in the sector.