Tuesday, June 3, 2014

Japan's Marubeni acquires strategic stake in Cambodian power sector

3 June 2014

Japan's Marubeni Corp has agreed to acquire a minority stake in a Malaysian company that owns and operates major power generation and transmission facilities in Cambodia.

Under the agreement announced Monday, the trading company giant will obtain 20% of Leader Infrastructure Ltd, a unit of Penang-based Leader Universal Holdings Bhd, the largest cable and wire producer in Southeast Asia.

This is the first time for a Japanese company to participate in the Cambodian power market. This is a "strategic partnership" with the Malaysian company in Cambodia. Marubeni envisages expanding its power business in Cambodia utilizing its extensive knowledge and experience from its worldwide participation in the power industry. Established in the Cayman Islands in 2007, Leader Infrastructure owns Cambodian Energy Ltd, which operates two 50 MW coal-fired power stations in Sihanoukville. It also owns Cambodian Transmission Ltd which operates the transmission line and substation between Kampong Cham and northern Phnom Penh. Both projects began commercial operations last year.

Marubeni noted that the Leader Group was a pioneer as a foreign independent power producer in Cambodia, having operated a 35 MW diesel-engine power plant since 1997. The Japanese company said its investment was being made through Leader Group company HGN Capital Sdn Bhd.

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