TNB completes 50% acquisition of Vortex Solar

Fund buying of Tenaga Nasional helped the KLCI jump 25 points in late afternoon trade on Monday

KUALA LUMPUR: Tenaga Nasional Berhad has completed the acquisition of a 50% interest in Vortex Solar Investments S.a.r.l. for the acquisition of an operational 365MW solar PV portfolio in the United Kingdom via Vortex Solar UK Limited.

In a filing with Bursa Malaysia Friday, TNB said the acquisition was made via its wholly owned subsidiary, TNB International Sdn. Bhd.

“The acquisition, with an enterprise value of circa 470 million pounds, achieves a key objective of TNB’s five-year international expansion plan to acquire up to 250 MW capacity of renewable energy projects by 2020,” TNB said.

TNB funded the acquisition through a US$750mil sukuk proceeds issued by the company in October last year.

“We are pleased to complete this acquisition which was a rare opportunity to acquire a sizeable solar power business in Britain and helps us deliver the renewable energy (RE) part of TNB’s international expansion plan more than one year ahead of schedule,” CEO Datuk Seri Ir Azman Mohd said in a statement. 

“The assets are an excellent investment which are immediately earnings enhancing with 80% of revenue under long term, 15-year power purchase agreements and subsidised by Renewable Obligation Certificates for the next 20 years,” he added. 

 With the completion of the acquisition, TNB’s international renewable energy portfolio will have a combined net installed capacity of 252 MW following acquisitions in power companies in India and Turkey in 2016.