KUALA LUMPUR, July 5 — 1Malaysia Development Bhd (1MDB) has entered into a conditional share agreement to acquire Jimah Teknik Sdn Bhd and Jimah O&M Sdn Bhd for RM1.2 billion.

In a statement today, 1MDB said it had completed a comprehensive due diligence exercise on the assets and reached an agreement with the vendors on a willing buyer and seller basis.

Through this purchase, IMDB will acquire a 75 per cent stake in Jimah Energy Ventures Holdings Sdn Bhd, the principle asset being the 1,400 MW coal-fired Jimah power plant in Negeri Sembilan.

1MDB said the acquisition diversifies its energy generation capacity and brings along highly experienced and credible management in coal-fired power plant operation as well as enhancing potential development opportunities in the sector.

This is 1MDB’s next step to supporting the continued economic growth of Malaysia through a more sustainable energy security.

According to IMDB, the transaction is subject to customary financing and regulatory approvals.

The acquisition is supported by Jimah’s strong cash flows backed by a 25-year PPA expiring in 2033. — Bernama