Malakoff May Sell Its 50% Stake In Australia’s Largest Wind Farm

Australia’s largest Wind Farm Macarthur, located between Hamilton and Warrnambool in south-western Victoria, is currently co-owned by Malakoff and HRL Morrison through an unincorporated Joint Venture (UVJ) and both the parties are having 50 percent interest in the farm.

Australia’s leading energy company AGL Energy Limited (ASX: AGL) used to own 50 percent interest in Macarthur Wind Farm, however in September Month of 2015, AGL announced the sale of its Macarthur Wind Farm joint venture to H.R.L. Morrison & Co managed funds (Morrison & Co) for a total consideration of $532 million.

However, AGL is still operating and maintaining the wind farm on behalf of both the owners and it is having rights to all Renewable Energy Certificates and electricity output until the year 2038.

As per recent market news, it has been speculated that Malakoff Corporation has appointed investment bank i.e., Rothschild to advise them regarding the sale of its 50 percent stake in Macarthur Windfarm. Rothschild & Co is a leading Investment bank which is involved in providing financial advice to large institutions, families, individuals, and governments, worldwide.

Malakoff is the leading Independent Power Producer (IPP) in Malaysia which is having seven power plants that run on oil, coal, and gas. Malakoff Corporation Berhad reported revenue of RM1,912.67 million and gross profit of RM352.2 million in the September quarter. At the end of the September quarter, the company was having total current assets of RM8,165.66 million. As at 30 September 2018, the net cash from operating activities was RM1290.6 million.

The Macarthur Wind Farm features 140 Vestas V112 – 3.0 MW wind turbines, and it is having a capacity of 420 Mega Watts. The capacity of Macarthur wind Farm is enough to power more than 155k average-sized homes in Victoria and reduce 1.5 million tons of greenhouse gases each year. In 2017, the plant recorded an equivalent availability factor of 96.8 percent.

It is not known whether the Macarthur Wind Farm’s current operator AGL Energy Limited will get affected in any way through this sale. However currently Macarthur Wind Farm is arranged under a finance lease arrangement with AGL hydro which means that all the risks and rewards incidental to ownership of the Macarthur Wind Farm are transferred to AGL Hydro, as the operator of the Macarthur Wind Farm.

On December 6, 2018, AGL Energy Limited ended the session on the positive note. The stock price of the company closed at A$19.420 per share which represents that it has witnessed an incline of A$0.300 per share or 1.569% with the market capitalization of $12.54 Bn. The company has an annual dividend yield of 6.12%.


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