mmc-corp-to-pay-26-billion-for-powerproducer-malakoff

MMC Corp to pay $2.6 billion for power-producer Malakoff

In Malaysia's biggest ever acquisition, MMC Corp offers to buy up the nation's biggest independent power producer.

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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