3 March 2006 – Malaysia’s Tanjong Group today announced the completion of the purchase of French power generator EDF’s Egyptian power unit and its two generating plants for $307m.
The plants, Suez Gulf and Port Said, have been operating since 2003 and produce about 10 per cent of Egypt’s electricity with a combined capacity of 1366 MW. Suez Gulf and Port Said each owns a gas-fired thermal power plant with a generating capacity of 682.5 MW located at each end of the Suez Canal in Egypt. The plants have a combined profit after tax of $21.6m on the back of a turnover of $174m in 2004.
The acquisition has been funded by way of $150m of bank borrowings and the balance through the Tanjong Group’s internally generated funds.
Robert Cheim, Chairman of Tanjong, said “The acquisition is in line with the Tanjong Group’s business development strategy to expand its investment in the power generation business internationally, and the opportunity to leverage on our core competencies and expertise.”
“With the acquisition, we will be able to further increase our involvement in the operation and maintenance (“O&M”) of power plants at an international level, with a view to positioning the Tanjong Group as a provider of high quality O&M services worldwide.”
In January 2005, the Tanjong Group, as part of a consortium, was awarded the 2000 MW and 160 million imperial gallons per day Taweelah B independent power and water project in the United Arab Emirates.
With the completion of the deal Tanjong Group’s total generating capacity will almost double to 2855 MW. Tanjong currently owns and operates three gas-fired power plants in Malaysia with a total generating capacity of 1490 MW.