KJTS and Stonepeak Form Joint Venture for District Cooling
Deal News | Mar 14, 2025 | Stonepeak
KJTS Group Berhad, a pioneer in energy-efficient cooling solutions based in Malaysia, and Stonepeak, an alternative investment firm specializing in infrastructure, have announced a joint venture aimed at boosting district cooling facilities across Malaysia. This strategic collaboration is anticipated to leverage up to MYR 1.5 billion in debt and equity to focus on district cooling and electricity distribution projects that meet Malaysia's rising energy demands. The venture aims to tackle a large market potential of MYR 2 billion in annual project opportunities, driven by industrial urbanization, energy efficiency mandates, and the burgeoning data center industry in Southeast Asia. Legal advisory roles for this partnership include Skrine for KJTS, and Linklaters LLP along with Rahmat Lim & Partners for Stonepeak. The collaboration is a testament to both companies' commitment to advancing energy transition platforms in Asia and enhancing carbon emission reductions.
Sectors
- Energy
- Infrastructure
Geography
- Malaysia – The joint venture and intended projects are focused within Malaysia, responding to local energy needs and regulatory climate action plans.
- United States – Stonepeak, the alternative investment firm involved, is headquartered in New York, USA.
Industry
- Energy – The article discusses investments in energy-efficient cooling solutions, which fall under the Energy sector.
- Infrastructure – Stonepeak is noted for specializing in infrastructure, and the joint venture focuses on building district cooling infrastructure.
Financials
- MYR 1.5 billion – The total debt and equity commitment for the joint venture.
- USD ~340 million – Approximate equivalent in USD for the MYR 1.5 billion commitment.
- MYR 2 billion – The annual market opportunity value targeted by the joint venture in project deployment.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| KJTS Group Berhad | Target | Company | A leading provider of energy-efficient cooling solutions based in Malaysia. |
| Stonepeak | Bidding Company | Company | An alternative investment firm focusing on infrastructure and real assets, headquartered in New York. |
| Skrine | Legal Advisor to KJTS | Company | Served as legal counsel for KJTS in the joint venture. |
| Linklaters LLP | Legal Advisor to Stonepeak | Company | Provided legal services to Stonepeak for the joint venture. |
| Rahmat Lim & Partners | Legal Advisor to Stonepeak | Company | Assisted Stonepeak as part of the legal counsel team. |