PETALING JAYA: Tenaga Nasional Bhd (TNB) has acquired an additional 5% stake in Vortex Solar Investments S.a.r.l, giving the company a majority equity interest in one of the largest solar platforms in the United Kingdom.
The £11mil (RM59mil) deal raised TNB’s stake in Vortex Solar to 55%, the company said in a filing with Bursa Malaysia yesterday.
Vortex Solar is one of the largest solar platforms in the UK with the Renewables Obligation Certificate subsidy scheme, comprising 24 operational solar farms with a total combined capacity of 365MW.
TNB first acquired a 50% equity stake of Vortex Solar in 2017.
“The portfolio has performed positively contributing £39.1mil (RM210mil) earnings before interest, taxes, depreciation and amortisation (Ebitda) in 2019, ” TNB said.
“The portfolio has shown growth from an 80% Ebitda margin in 2018 to an 84% Ebitda margin in 2019. This acquisition is expected to contribute positively to the group’s net profit at completion, ” it added.
In a statement, TNB president and chief executive officer Datuk Seri Amir Hamzah Azizan described the acquisition as a key milestone in the group’s commitment to reduce its carbon footprint and grow its international renewable energy business portfolio.
He said the move was in line with its energy transition aspiration of becoming the leading provider of sustainable energy solutions both domestically and internationally.
“With the acquisition, TNB now has majority control of Vortex Solar, thereby further strengthening the group’s international European renewable energy business footprint where TNB already wholly owns Tenaga Wind Ventures UK Ltd (TWV), the largest feed-in-tariff wind portfolio in the UK.
“This acquisition forms part of TNB’s new strategy of growing our renewable energy businesses in the UK and Europe and is a deliberate move to take control of our high-performing renewable energy assets, beginning with the acquisition of 100% in TWV earlier this year.”By leveraging on TNB’s existing capabilities and its control of TWV and Vortex Solar, Amir said TNB will continue to expand in the region, in line with its international renewable energy growth strategy through the restructuring of Vortex Solar and TWV into a renewable asset company aimed at owning, operating and managing a portfolio of renewable energy assets in the UK and Europe.
“Despite the challenging times caused by the global Covid-19 pandemic, both Vortex Solar and TWV’s financial and operational performances have been performing beyond expectations.”
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