In potentially the largest acquistion ever undertaken in Malaysia, MMC Corp announced on Wednesday May 17 that it will pay M$9.3 billion $2.6 billion to buy Malaysia's biggest independent power producer, Malakoff.
The investment holding company plans to also assume Malakoff's debt so that makes the cost of the deal roughly M$16.8 billion.
MMC’s proposed offer to shareholders represents a distribution of M$10.35 per share, a premium of 5.7% and 13.0% over the 5 day and 3 months weighted average price of Malakoff’s shares. This would value the company’s shares at 18 times 2005 earnings. A statement by MMC says that the acquisition is...
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