The recent changes in the board of the state government-owned Sarawak Enterprise Bhd (SEB) indicate that Chief Minister Abdul Taib Mahmud's family-related business interest is moving into power generation in a big way.

Taib's relative, a low-profile but highly-successful Melanau businessman Hameed Sepawi has been appointed SEB's new chairperson in place of Taha Ariffin, who resigned.

Also appointed to the board is the chief minister's brother-in-law, Sarawak State Secretary Aziz Hussein.

His appointment is said to be connected to the government's big stake in SEB with power generation as its core business.

SEB has already transferred its sizeable stake in the loss-making Kuching-based wafer foundry 1st Silicon Sdn Bhd to the government. Sources claimed the government is paying for the transfer by way of assets.

Meanwhile, former state financial secretary Wan Ali has relinquished his position as director and chief executive of SEB.

New utility power company

Malaysiakini learned today that SEB with a paid-up capital of RM1.1 billion will be run by a board's triumvirate comprising chairperson (Hameed Sepawi) and two other executive directors (Aziz Hussein and state Attorney-General JC Fong) following the restructuring.

According to an announcement yesterday, the state's utility power company Sarawak Electricity Corporation (Sesco) was dissolved and a new company known as Syarikat Sesco Berhad (SSB) will take over from July 1 as SEB's wholly-owned subsidiary to run the business of power generation in the state.

It is understood that since the government still owns 51 percent of Sesco so when its successor company becomes a 100 percent-owned subsidiary of SEB, the government's equity in SEB will be raised to about 65 percent.

A recent government ruling requires the government's stake to be raised to no less than 70 percent in SEB because of the vital nature of the resources to the country.

Presently, about 19 percent, with a market value of RM250 million of SEB's equity, is held by Multi-Purpose Holdings Sdn Bhd.

It is said the latter, which does not have board representation, has wanted to completely sell-off its stake in SEB.

Multi-Purpose Holdings directors are said to have met the chief minister regarding this.

Huge returns on the cards

Sources said indications are that either Naim Cendera or Tai Ann - Hameed is the chairperson of both these companies - and even Taib's family-controlled CMS Bhd may take up whole or most of the stake when it is sold.

Another interesting feature in the equity shareholdings of SEB is the 10 percent or more stake still held by TK Lim who once controlled Dunlop Estates Berhad (DEB), SEB's former name. It is believed that he could be a nominee since he has faded from the scene for a long time.

Less minority shareholders or shares in public hands and the state government's new partner(s) could end up holding a 20 to 30 percent stake in SEB eventually.

At present market capitalisation, this could cost the new buyers anything between RM350 million and RM400 million.

With SEB already divesting its shares in 1st Silicon and only retaining small shares in Normah Medical Centre and Curtin University Campus in Miri, and with its monopolitic control of power generation in Sarawak it will be a highly lucrative investment from which an even half a billion ringgit invested could net returns faster than anticipated.

TONY THIEN is malaysiakini's Sarawak-based stringer.