- Tenaga Nasional (Tenaga) is buying a 50 percent stake in Vortex Solar Investments for GBP86 million (RM474 million).
- The acquisition is in line with Tenaga’s five-year international expansion roadmap to increase its power generation capacity including renewable power.
- The purchase would allow Tenaga to have a stake in a company which holds certain interest of solar photovoltaic projects in the UK with a combined net installed capacity of about 365 megawatts. Its solar energy assets have an average asset age of two years and an estimated useful life of 30 years.
- Its unit TNB International had entered into a subscription and funding agreement with Beaufort Investments to subscribe for new equity shares in Vortex Solar.
Significance: The purchase is immediately earning accretive on completion of the acquisition as it is backed by a 15-year power purchase agreements and supported by renewable obligation certificates for 20 years.