Camco International Limited, a global developer of emission reduction and clean energy projects, has announced a joint venture agreement with Khazanah Nasional, the investment holding arm of the Government of Malaysia.
The joint venture is a significant development in the emissions to energy market in South East Asia, with Khazanah having investments in over 50 major companies in the region, and Camco bringing a 20 year track record in project delivery and commercial excellencein the US, the UK, China, Africa, Russia and SEA where it has experience in sustainable energy production across a range of industries including agricultural methane, industrial energy efficiency, coal mine methane, municipal solid waste, biomass and landfill gas.
On inception, the joint venture will be capitalised at $30 million, made up of $14.7 million from Khazanah as equity, $10.15 million as a convertible bond and $5.15 million from Camco as equity investment.
Khazanah has also committed to contribute a maximum additional consideration of $16.05 million (up to 2013) into the joint venture subject to the performance of transferred existing and future carbon contracts. Camco will also hold a warrant to subscribe for additional equity in the joint venture of $3.7 million. Camco will initially have a 60.1 per cent share holding in the joint venture, but ultimately reducing to a 51 per cent interest.
"Khazanah is the optimal long term investor for Camco in the SEA region,” said Scott McGregor, CEO of Camco. “The joint venture will leverage Khazanah's unrivalled local expertise, which will open a whole new vista for our operations in the region. We look forward to creating a market-leading business together, with the people, know-how and funding to deliver."
Khazanah's managing director, Tan Sri Dato' Azman Hj Mokhtar, said: "We are very pleased to have formed a JV partnership with Camco to establish a SEA emission reduction company, which will be at the forefront of shaping the emission reduction / carbon abatement sector in the entire SEA region and most importantly in Malaysia. Furthermore, this entity will also serve as Khazanah's vehicle to grow the sustainable development sector as part of Malaysia's New Economic Model."
