Pendekar takes over Meghnaghat, Haripur power plants next week
Thursday, 22 November 2007
A Z M Anas
A Saudi-Malaysian consortium, Pendekar Energy, is set to formally take over Meghnaghat and Haripur power plants next week, ending the Bermuda-based Globeleq's presence in Bangladesh's power sector.
"Although the acquisition by Pendekar is effective from today (Wednesday), the new company will take over the charge Sunday," a competent source said Wednesday.
"The takeover will mark an end to the long dominance of Globeleq in the country's power generation. On many accounts, the acquisition can be seen as the largest in the power sector so far," the source added.
In addition to operating Meghnaghat and Haripur stations, Pendekar will also jointly operate the 113 megawatt NEPC, which was co-operated by Globeleq.
But official clearance from the Power Division is still pending, although Pendekar has obtained separate notes of consent from its lenders for the buyout deal, officials at the Power Division said.
"All pending issues that have delayed the transfer are now resolved. The company can float initial public offering up to 75 per cent on the Malaysian stock exchanges," another source said.
Power sector analysts say the new operator requires to handle the Bangladesh operation efficiently as the combined output of the three power plants account for nearly 35 per cent of the country's total electricity generation.
"We shouldn't be oblivious that electricity supplied to the national grid by Globeleq was perhaps the cheapest in the world, even cheaper than that of Bangladesh Power Development Board's own plants. So, it calls for rigorous monitoring by the government," one analyst, preferring anonymity, noted.
However, Globeleq has underplayed such apprehensions time and again, reiterating the ownership transfer will not have any negative impact on future operations of the companies.
The CDC Group, through its subsidiary CDC Globeleq Holdings Limited, reached a deal in May this year to sell the entire share of Globeleq Ltd to Pendekar, a consortium of Tanjong Energy Holdings (Malaysia) and Aljomaih Automotive Company (Saudi Arabia) for $493 million.
Tanjong Group, which owns and operates three gas-fired power plants in Malaysia with a total generation capacity of 1,490 megawatt (MW), is the second largest independent power producer in Malaysia. It has also effective stakes in power generation companies in the United Arab Emirates and Egypt.
The company's turnover was US$ 482 million in the fiscal 2007 ending January 31.
Similarly, with its annual turnover of $888 million in 2005, Aljomaih Automotive Company is one of the largest business groups in the Gulf region and is mainly engaged in the distribution of branded products.
According to figures available with CDC Globeleq, Meghnaghat Power Limited generated revenues amounting to $387 million in fiscal ended in June 2007.
A Saudi-Malaysian consortium, Pendekar Energy, is set to formally take over Meghnaghat and Haripur power plants next week, ending the Bermuda-based Globeleq's presence in Bangladesh's power sector.
"Although the acquisition by Pendekar is effective from today (Wednesday), the new company will take over the charge Sunday," a competent source said Wednesday.
"The takeover will mark an end to the long dominance of Globeleq in the country's power generation. On many accounts, the acquisition can be seen as the largest in the power sector so far," the source added.
In addition to operating Meghnaghat and Haripur stations, Pendekar will also jointly operate the 113 megawatt NEPC, which was co-operated by Globeleq.
But official clearance from the Power Division is still pending, although Pendekar has obtained separate notes of consent from its lenders for the buyout deal, officials at the Power Division said.
"All pending issues that have delayed the transfer are now resolved. The company can float initial public offering up to 75 per cent on the Malaysian stock exchanges," another source said.
Power sector analysts say the new operator requires to handle the Bangladesh operation efficiently as the combined output of the three power plants account for nearly 35 per cent of the country's total electricity generation.
"We shouldn't be oblivious that electricity supplied to the national grid by Globeleq was perhaps the cheapest in the world, even cheaper than that of Bangladesh Power Development Board's own plants. So, it calls for rigorous monitoring by the government," one analyst, preferring anonymity, noted.
However, Globeleq has underplayed such apprehensions time and again, reiterating the ownership transfer will not have any negative impact on future operations of the companies.
The CDC Group, through its subsidiary CDC Globeleq Holdings Limited, reached a deal in May this year to sell the entire share of Globeleq Ltd to Pendekar, a consortium of Tanjong Energy Holdings (Malaysia) and Aljomaih Automotive Company (Saudi Arabia) for $493 million.
Tanjong Group, which owns and operates three gas-fired power plants in Malaysia with a total generation capacity of 1,490 megawatt (MW), is the second largest independent power producer in Malaysia. It has also effective stakes in power generation companies in the United Arab Emirates and Egypt.
The company's turnover was US$ 482 million in the fiscal 2007 ending January 31.
Similarly, with its annual turnover of $888 million in 2005, Aljomaih Automotive Company is one of the largest business groups in the Gulf region and is mainly engaged in the distribution of branded products.
According to figures available with CDC Globeleq, Meghnaghat Power Limited generated revenues amounting to $387 million in fiscal ended in June 2007.