Malakoff Expands Renewable Energy Portfolio with Acquisition of ZEC Solar and TJZ Suria

Malakoff Corporation Berhad (Malakoff) has entered into a conditional Share Sale and Purchase Agreement (SSPA) with Zelleco Engineering Sdn Bhd (Zelleco) for the proposed acquisition of a 51% equity interest in ZEC Solar Sdn Bhd (ZEC Solar) and a 49% equity interest in TJZ Suria Sdn Bhd (TJZ Suria). This acquisition is anticipated to immediately boost Malakoff’s effective capacity to 128 MW in the Renewable Energy (RE) sector, optimizing operational costs through resource synergies and economies of scale.

The SSPA signing ceremony involved Malakoff’s Managing Director & Group Chief Executive Officer, Encik Anwar Syahrin Abdul Ajib, Zelleco’s Executive Chairman, YBhg. Dato’ Zakri Afandi Ismail, and Zelleco’s Managing Director, YBhg. Dato’ Wan Jamaludin Wan Abdul Malik. The agreement was witnessed by Malakoff’s Head of Business Development, Encik Shaja Ibrahim.

ZEC Solar, the owner and developer of a 29 MW Large Scale Solar (LSS) facility in Kota Tinggi, Johor Darul Ta’zim, operates under a 21-year Solar Power Purchase Agreement (SPPA) until 2040. This acquisition positions Malakoff to expand its capacity and portfolio in the RE sector, in alignment with the National Energy Transition Roadmap (NETR), emphasizing its commitment to green and sustainable growth.

Encik Anwar Syahrin Abdul Ajib expressed strong enthusiasm for the strategic acquisition, highlighting the addition of 15 MW of solar capacity to Malakoff’s portfolio, bringing the total installed RE capacity to 168 MW. He underscored the importance of leveraging Malakoff’s technical capabilities to meet future LSS bidding exercises.

The expansion aligns with Malakoff’s ongoing efforts in growing its RE portfolio, including ventures into hydropower and securing SPPAs with major industry players. Through its newly established business pillar, Malakoff Green Solutions, the company’s RE portfolio spans various initiatives, reinforcing its commitment to sustainability.

Encik Anwar Syahrin Abdul Ajib emphasized Malakoff’s momentum in contributing to the country’s energy transition, aligning with national targets for achieving Net Zero Emissions and increasing RE capacity. The acquisition signifies Malakoff’s dedication to fostering a greener future through renewable energy initiatives.