More than 10 years ago, Asiatic provided a corporate guarantee to assist MJE in obtaining financing for the construction of its biomass plant. The biomass plant had been unprofitable and Asiatic had written off all its investments in the plant from its books.
Asiatic Group (Holdings) (SGX:5CR
) has reached an agreement with white knight Etagreen Management to dispose of all of its 30% shareholdings in biomass venture Maju Intan Biomass Energy (MJE).
The disposal of MJE to Etagreen has been made at a nominal consideration of RM10.00 ($2.98), for the financial support of approximately RM34.5 million.
