PETALING JAYA: Tenaga Nasional Bhd
(TNB) has agreed to grant the extension period to SIPP Energy Sdn Bhd in relation to the share sale and purchase agreement for the acquisition of 51% stake in Southern Power Generation Sdn Bhd (SPG).
The national utility company in a filing with Bursa Malaysia today said upon the requisition by SIPP Energy it has agreed to grant for another extension of 30 days for the fulfillment of the conditions precedent to the said agreement.
The additional time, according to TNB was to facilitate the fulfillment or satisfaction of the remaining conditions precedent.
TNB on May 3 announced to the exchange it had acquired a 51% stake in SIPP Energy’s Johor-based unit SPG, a company that was given the nod to build a 1,440 MW power plant in Pasir Gudang, Johor, last September.
It inked a share sale and purchase agreement with SIPP Energy and a shareholder’s agreement with both SIPP Energy and SPG to buy the stake for RM51.
TNB said the acquisition was made after it received the Energy Commission and the Government’s approval. SPG was incorporated on August 12, 2016 as the special purpose vehicle company for the development of 2x720MW Combined Cycle Gas Turbine Power Plant project in Pasir Gudang.
The project is expected to achieve its scheduled commercial operation date on July 1, 2020 and would also enhance TNB’s generation capacity and give a positive impact on its earnings, and in return it would add long-term value for TNB’s shareholders.
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