MMC Corp Bhd (MMC) said it expected the advisors and underwriters for the re-listing of its 51 per cent-owned
subsidiary, Malakoff Corp Bhd, to be appointed in June.

MMC Group Managing Director Datuk Hasni Harun said the listing will take place 6-12 months following the appointments.

"We are starting the process to appoint equity advisors and underwriters to advise the board of Malakoff on the re-listing.

"The proceeds from the initial public offering of Malaakoff is expected to pare down MMC's group borrowings," he told reporters after the company's annual general meeting here today.

He said the value of the independent power producer (IPP) should be higher than the RM9 billion when it was privatised in 2006.

"The new businesses that we have locked in quite recently, namely the 1,000MW which we have secured through negotiated tender and the future bidding we are going to do, should further improve the valuation of Malakoff.

"I can't really give you the figure now because the valuation methodology varies from house to house, and obviously our expectation is that the value should be higher than the figure when we privatised it before," he explained.

Hasni said the re-listing would require MMC to dilute its 51 per cent stake in Malakoff by a quarter.

However, he said if new shares were to be issued by Malakoff in conjunction with the re-listing, then MMC might maintain higher stakes in the IPP.

"Obviously, there will be some issuance of new shares because we want to capitalise the company, besides unlocking some of its value to shareholders," he added.

Besides Malakoff and soon-to-be listed Gas Malaysia, he said MMC was also eyeing to float companies in its transport and logistics division.

"We are eyeing several (companies)...Either we consolidate them as single entity or list them individually. We have not decided yet," said Hasni.

Asked if Malakoff has plans to venture into the energy sector in Pakistan, he said the company was still conducting a preliminary study on the viability of using wind technology to generate power.

"As part of a study, we have put our equipment there for six months to make sure there is enough wind to generate electricity.

"Normally, the requirement is to have 12 months statistics, so we will proceed for another six months before making a decision," he added. -- Bernama