Camco International Limited: Camco Forms Joint Venture With Khazanah Nasional Expanding Its Operatio

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28th September 2010, 11:17am - Views: 797






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MEDIA RELEASE PR41482


Camco International Limited: Camco Forms Joint Venture With Khazanah Nasional Expanding its

Operations in South East Asia


LONDON, Sept. 28 /PRNewswire-AsiaNet/ --


    Camco International Limited ("Camco", AIM:CAO), a global

developer of emission reductions and clean energy projects, today announces

the formation of a joint venture agreement with Khazanah Nasional

('Khazanah'), the investment holding arm of the Government of Malaysia.


    As a partnership between Khazanah, a leading regional investor

with investments in over 50 major companies mainly in South East Asia, and

Camco, a leading global company with a 20 year track record in project

delivery and commercial excellence, the joint venture is strongly positioned

to become the leading player in the emissions to energy market in the region.


    The joint venture will be capitalised with up to US$46.05

million to invest in the emissions to energy market in South East Asia, as

well as carbon development and advisory services.


    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. In

addition Khazanah has committed to contribute, on an earn-out basis, a

maximum additional consideration of $16.05 million (up to 2013) into the

joint venture subject to the performance of transferred existing carbon

contracts and future carbon contracts to be undertaken by the joint venture.

Camco will also hold a warrant to subscribe for additional equity in the

joint venture of $3.7 million. On inception, Camco will have a 60.1% share

holding in the joint venture and on a fully diluted basis (following the

exercise/conversion of all outstanding warrants and convertible bonds) a 51%

interest.


    Camco will contribute its nominal existing carbon projects in

South East Asia (not including its China portfolio) and pipeline, its

emission reduction project development and investment business pipeline for

South East Asia, an employee platform for South East Asia, access to its

global operations including advisory professional services, commercial carbon

sales and qualification of carbon projects through specific service

agreements, use of the Camco brand in South East Asia, and carbon development

costs capitalised at $0.8 million and an investment of $5.15 million.


    As part of the transaction, Khazanah will invest GBP1.86

million into Camco through the subscription of 9,280,913 ordinary shares at a

price of 20p per share. Application has been made for the 9,280,913 ordinary

shares to be admitted to trading on AIM. The admission is expected on 30

September 2010. Scott McGregor, Chief Executive Officer of Camco, commented:


    "Khazanah is the optimal long term investor for Camco in the

SEA region. 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."


    Notes to editors:


    About Camco


    Camco International Limited (Camco, AIM:CAO) is a global

developer of emission reductions and clean energy projects with operations in

the US, the UK, China, Africa, Russia and SEA.


    Camco has a 20 year track record in project development,

technical delivery and policy development, working with local industry,

multinational companies, governments and regulatory bodies.


    Camco's Clean Energy Project Development and Investment teams

collaborate with industry, project developers, equipment providers and

investor groups to create emissions-to-energy projects and maximise

sustainable energy production across a range of industries; including

agricultural methane, industrial energy efficiency, coal mine methane,

municipal solid waste, biomass and landfill gas.


    The Carbon Project Development business has created one of the

largest emission reductions portfolios and has structured groundbreaking and

innovative arrangements for the sale and delivery of emission reductions to

compliance and voluntary buyers.


    The Energy and Carbon Advisory teams provide strategic,

commercial and technical expertise accrued over two decades to deliver low

carbon energy and sustainable development solutions.




    About Khazanah Nasional Berhad


    Khazanah is the investment holding arm of the Government of

Malaysia entrusted to hold and manage the commercial assets of the Government

and to undertake strategic investments. Khazanah is involved in various

sectors such as power, telecommunications, banking, automotive manufacture,

airport management, infrastructure, property development, broadcasting,

semiconductor, steel production, electronics, investment holding, technology

and venture capital. Some of the key listed companies in Khazanah's

investment portfolio include Telekom Malaysia Berhad, Tenaga Nasional Berhad,

CIMB Group, Proton Holdings Berhad, PLUS Expressway Berhad, Malaysia Airlines

System Berhad, Malaysia Airport Berhad, UEM Land Holdings Berhad, Axiata and

Time dotCom Berhad.




    

    Enquiries:


    Camco

    Scott McGregor, Chief Executive Officer

    Yariv Cohen, Chief Carbon Officer

    +44(0)20-7121-6100


    Khazanah

    Mohd. Asuki Bin Abas

Business Company Camco International Limited 3 image

    +603-2034-0000

 

    KBC Peel Hunt (Camco Nominated Adviser and Broker)

    Jonathan Marren

    +44(0)20-7418-8900

 


    M:Communications (Camco Public Relations Advisor)


    Charlotte Kirkham

    +44(0)20-7920-2331


    Elly Williamson

    +44(0)20-7920-2339


    Patrick d'Ancona

    +44(0)20-7920-2347

 


    RBS (Khazanah Nasional Adviser)


    Lee Morton

    +44(0)20-7678-1139


    Nikhil Gureja

    +852-3961-3335



    SOURCE: Camco International Limited



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