Media & Downloads
Press Releases

15 July 2019

Statement on the divestment of Khazanah’s stake in Malaysian Shoaiba Consortium

We refer to various reports on the divestment of our 40% stake in Malaysian Shoaiba Consortium Sdn Bhd (“Consortium”), and would like to clarify as follows:

      Khazanah entered into a joint investment in 2005 with Malakoff Corp Berhad (“Malakoff”) and Tenaga Nasional Berhad (“TNB”), via the Consortium, to support Malaysia’s entry into Saudi Arabia’s independent water and power producer market. As the project is completed and fully operational, Khazanah has achieved the commercial objectives of its investment in the Consortium. In accordance with the Consortium’s shareholders agreement, our 40% stake was offered to the existing partners. Malakoff subsequently took the offer, which allowed Khazanah to exit with a healthy profit at a value based on future cash flows of the project.
      Khazanah assesses all opportunities for divestment against set financial and strategic targets. Assets may be considered for divestment once the intended investment objectives and targeted returns have been achieved, as is the case with the divestment of our stake in the Consortium. Divestments may also depend on the strength of the market, as well as the availability, quality and credibility of buyers.
      Under Khazanah’s refreshed mandate, we operate on a two-fund model – a commercial fund and a strategic fund. In general, our commercial fund is focused on creating a global portfolio that diversifies our assets and income for the country’s benefit. Our strategic fund focuses on strategic domestic investments, particularly in infrastructure.
      The proceeds from the divestment of our stake in the Consortium, like all other divestments by Khazanah, are reinvested based on the objectives of the two funds or are used to repay existing debts on our balance sheet. For the year to date, Khazanah has committed investments amounting to approximately RM1.4 billion and reduced overall debt by approximately RM6.4 billion, in line with our corporate strategies. We further expect to undertake more investments in the second half of 2019, based on the opportunities that we are exploring.

END



Other Press Releases
12 September 2023

Khazanah and Khazanah Research Institute, in colla...

Read more  

27 July 2023

Khazanah Stands Ready to Support “Ekonomi MADANI...

Read more  

25 July 2023

Khazanah Impact Innovation Challenge 2023 Calls fo...

Read more  

13 July 2023

Global Venture Capital Firm Antler Partners With K...

Read more  

27 June 2023

Khazanah spearheads green investment platform to a...

Read more  

6 June 2023

Khazanah invests in homegrown full-stack InsurTech...

Read more  

25 May 2023

Khazanah reopens Malaysia’s USD Sukuk and Bond M...

Read more  

27 April 2023

Khazanah assigned A3/A- by International Credit Ra...

Read more  

19 April 2023

Khazanah leads concerted efforts to uplift PPR com...

Read more  

9 April 2023

Iskandar Malaysia Studios attracts foreign investm...

Read more