Sarawak Energy Completes Acquisition Of Bakun HEP From Federal Government

RM2.5B Share Sale Agreement sees Sarawak Energy purchase Malaysia’s largest hydropower generation asset

KUCHING, 16TH AUGUST 2017, WEDNESDAY:  Sarawak Energy Berhad’s (Sarawak Energy) share purchase of Sarawak Hidro Sdn Bhd (SHSB) was completed today with the signing and close-out of items detailed in the Share Sale Agreement (SSA). Following this, Sarawak Energy will assume control of SHSB, the owner and operator of Bakun Hydroelectric Plant (HEP).

Sharbini Suhaili, Sarawak Energy’s Group Chief Executive Officer said, “I am pleased to announce that we now own the 2,400MW Bakun HEP, the largest hydropower plant in the country. This achievement was made possible through our Chief Minister YAB Datuk Amar Abang Haji Abdul Rahman Zohari Tun Datuk Abang Haji Openg’s strong leadership and support.”

“This will allow us to consolidate power production, enabling us to have full ownership and operatorship of all major electricity generation facilities in Sarawak. We are grateful to the Sarawak Government for their continuing trust in Sarawak Energy to deliver the State’s strategy to develop and consolidate Sarawak’s energy resources,” he continued.

The SSA to acquire Bakun HEP for RM2.5 billion was completed at Sarawak Hidro’s office in Selangor today in the presence of representatives from all parties involved.

Following the completion of the SSA, SEB Power Sdn Bhd - a wholly owned subsidiary of Sarawak Energy - acquired 100 per cent of shares in SHSB from the Ministry of Finance and Pesuruhjaya Tanah Persekutuan. The Ministry of Finance will maintain the current Letter of Undertaking and Government Guarantee on SHSB’s existing debts.

The acquisition is being funded through a mix of Sarawak Energy’s internally generated funds and external financing.

NOTES Sarawak Energy is a wholly state-owned energy development company and power utility and employs a workforce of over 4,600 Sarawakians. Sarawak Energy’s mission is to achieve sustainable growth and prosperity for Sarawak by meeting the region's need for reliable, renewable energy.

Sharbini Suhaili, Sarawak Energy GCEO

Aerial view of Bakun HEP