Singapore-listed Asiatic Group (Holdings) Ltd is disposing of its 30% stake in Maju Intan biomass power plant in Perak, marking its exit from the troubled biomass project after over ten years, reported The Edge Markets.
Asiatic's stake in the project company Maju Intan Biomass Energy is being disposed to Etagreen Management for RM10, plus financial support of approximately RM34.5 million, it said.
“When completed, our exit from the Maju Intan Biomass Power Plant will reduce our contingent liabilities and improve our financial position. We will strive to take more strategic beneficial actions for the Group to unlock value for shareholders,” said Asiatic's managing director Tan Boon Kheng.
Asiatic first bought the 30% stake in MJE back in 2009, for RM10 million. The group had provided corporate guarantee for MJE’s financing, and extended loans to the company over the years.
In July 2022, the group defaulted on RM122.2 million payments linked to the 12.5 megawatt Maju Intan biomass power plant project.