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.


Other Press Releases
11 March 2024

Khazanah records RM5.9 billion profit for 2023, so...

Read more  

9 March 2024

Khazanah launches #BerbudiBersama initiative to ce...

Read more  

6 March 2024

Khazanah announces new Chief Investment Officer...

Read more  

3 January 2024

Khazanah Nasional Berhad and CGC Digital announce ...

Read more  

7 November 2023

Khazanah Impact Innovation Challenge 2023 unveils ...

Read more  

13 October 2023

Statement by Dato’ Amirul Feisal Wan Zahir, Mana...

Read more  

10 October 2023

Khazanah’s 15-year partnership with GTI solidifi...

Read more  

5 October 2023

CDP Group and Khazanah Nasional Berhad signs MoU, ...

Read more  

12 September 2023

Khazanah and Khazanah Research Institute, in colla...

Read more  

27 July 2023

Khazanah Stands Ready to Support “Ekonomi MADANI...

Read more