-- Acquisition has a total enterprise value of circa
GBP 470 million
-- It is the first acquisition by TNB in the UK and is part
of an ongoing international expansion strategy
KUALA LUMPUR, Malaysia,
May 12, 2017 /PRNewswire/ --
Tenaga Nasional Berhad ('TNB'), Malaysia's national electric utility company,
today completed the acquisition of a 50% interest in one of the
UK's largest portfolios of operating solar power assets, with a
combined capacity of 365 MW.
TNB is one of the largest utility companies in Asia with a market capitalisation of
approximately USD 18 billion and a
total power generation capacity of around 13GW, predominantly in
Malaysia. The c. GBP 470 million transaction is TNB's first
investment in renewable generation capacity in Europe. The acquisition was made as part of
TNB's ongoing five-year international expansion plan and achieves
one it is main objectives, to acquire up to 250 MW of renewable
energy capacity by 2020.
The acquisition was made via Vortex Solar UK Limited, an
indirect wholly owned subsidiary of a TNB joint venture, Vortex
Solar Investment S.a.r.l. ('Vortex'), which acquired a 100%
interest in the portfolio. TNB has a 50% shareholding in Vortex
alongside Beaufort Investments S.a.r.l. which holds the balance of
50%.
Vortex Solar UK Limited signed a Sale and Purchase Agreement in
January with a subsidiary of Terraform Power Inc. to acquire the
solar portfolio which includes 24 solar photovoltaic farms, one of
Britain's largest solar power
portfolios.
TNB funded the acquisition from the proceeds of a US$750 million sukuk issued by the company in
October 2016.
Datuk Seri Ir. Azman bin Mohd,
TNB's CEO, said: "We are pleased to complete this
acquisition, which was a rare opportunity to acquire a sizeable
solar power business in the UK. The acquisition also helps us
deliver the renewable energy part of TNB's international expansion
plan more than one year ahead of schedule."
"The assets are an excellent investment and are earnings
enhancing, with 80% of revenue under long term, 15-year power
purchase agreements and subsidized by Renewable Obligation
Certificates for 20 years."
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.
Tenaga Nasional Berhad
Tenaga Nasional Berhad (TNB) is Malaysia's only electric utility company. Its
core activities are in the generation, transmission, and
distribution of electricity. In addition to being the nation's
primary electricity generation enterprise, TNB also transmits and
distributes all the electricity in Peninsular Malaysia,
Sabah and Federal Territory of
Labuan. As at 31 August 2014, TNB
supplies electricity to approximately 8.6 million customers.
TNB, through its subsidiaries, is also involved in the
manufacturing of transformers, high voltage switchgears and cables;
the provision of professional consultancy services, construction
and operating and maintenance of district cooling facilities,
generation equipment, repair and maintenance, fuel supply services;
services related to renewable energy, energy efficiency and power
quality; higher education and skill training and undertakes
research and development.
As an integrated electricity provider, TNB has and will continue
to meet its crucial role in powering the nation's progress. For
further information, please visit www.tnb.com.my
Beaufort Investments S.a.r.l.
Beaufort Investments S.a.r.l., is the investment manager of
Vortex. Vortex was established in 2014, sponsored by EFG Hermes, to
pursue yielding renewable energy investments in Europe. Vortex comprises a team of 10
dedicated infrastructure and private equity specialists with wide
experience in global infrastructure and renewable energy
investments and today manages 822MW of wind and solar assets
spreading across six countries, making it one of the largest
renewable energy focused investment vehicles in Europe
Since its launch in late 2014, Vortex has successfully invested
more than EUR 1.3 billion in the
European renewables market. The UK solar portfolio joins an
existing 457MW (net) portfolio of operating onshore wind assets
operated by EDP Renovaveis SA across four Western European
countries.
TerraForm Power Inc.
TerraForm Power (Nasdaq:TERP): Terraform Power Inc. is a global
owner and operator of clean energy power plants.
For inquiries, please contact Malcolm
Robertson (+65 90294930) at
malcolm.robertson@fticonsulting.com