Subiaco-based Mission NewEnergy has sold its Kuantan Port biodiesel refinery for $24 million to a newly formed joint venture company in which it will retain a 20 per cent stake.
Mission announced today that its Malaysian subsidiary, M2 Capital, had entered into a joint venture agreement with Malaysian-based Felda Global Ventures Holdings and US technology firm Benefuel, to establish a new jointly owned company that would own and operate the 250,000 tonnes per annum biodiesel refinery.
Under the terms of the agreement, Felda Global will hold a 60 per cent interest in the refinery, with Benefuel to own the remaining 20 per cent not held by Mission.
“We are delighted to retain a 20 per cent equity stake in the refinery through the joint venture,” Mission chief executive officer Nathan Mahalingam said.
“The first 100,000 tonnes per annum refinery which Mission sold to Felda Global last year is now operating profitability at near full capacity.
“We have no doubt that the second refinery will do even better.”
Mission said its subsidiary would use a significant portion of the proceeds from the sale for debt reduction, while setting aside $4 million that would remain in an account, as ordered by the High Court in Malaysia, while the joint venture arrangements were finalised.
Mission shares last traded at 0.9 cents per share at 12:46pm.
