KUALA LUMPUR: Tenaga Nasional is buying a 50% stake in Vortex Solar Investments S.a.r.l. for 86mil pound sterling (RM474mil) cash under its five-year international expansion roadmap to boost its power generation capacity including renewable power.
The power giant said on Friday the purchase would enable it to have a stake in the company which holds certain interest of solar photovoltaic (PV) project companies that own and operate solar PV projects in the UK with a combined net installed capacity of about 365MW.
It said the proposed subscription enables it to realise the renewable energy (RE) part of the plan ahead of schedule. The solar energy assets are a unique portfolio of young and sizable asset with an average asset age of two years and an estimated useful life of 30 years.
“They are immediately earning accretive on completion of the acquisition and currently delivering a high performance ratio (PR). They are backed by a 15-year power purchase agreements secured with creditworthy off-takers and supported by renewable obligation certificates for 20 years,” it said.
Its unit TNB International Sdn Bhd (TNBI) had entered into a subscription and funding agreement with Beaufort Investments S.a.r.l. (Beaufort), a unit of EFG Hermes Holding to subscribe for new equity shares in Vortex Solar.
Beaufort formed Vortex Solar to finance in part the acquisition by Vortex Solar UK Ltd (Vortex Solar UK), an indirect unit of Vortex Solar, of all the shares of TerraForm UK 2 Intermediate Holdings Ltd and TerraForm UK 3 Intermediate Holdings Ltd (target companies) and redeem a loan note extended to the target companies.