TNB Acquires Remaining 20% Interest In UK Renewable Energy Companies

KUALA LUMPUR, March 4 (Bernama) -- Tenaga Nasional Bhd (TNB), via its wholly-owned subsidiary, Tenaga Wind Ventures UK Ltd (Tenaga Wind), has acquired the remaining 20 per cent interest in two United Kingdom (UK) renewable energy companies for £18.6 million in cash. The acquisition of GVO Wind Ltd and Bluemerang Capital Ltd was as initially agreed in the Share Purchase Agreements signed with the sellers, Georg von Opel and Tanzanite B.V. & Catalin Breaban, on Feb 28, 2018. With this acquisition, TNB now owns the entire asset and control over the two companies and their respective assets via Tenaga Wind. These companies are the largest Feed-in Tariff (FiT) wind portfolio in the UK, comprising 53 operational onshore medium wind turbines with a total combined capacity of 26.1MW. TNB president and chief executive officer Amir Hamzah Azizan said the latest acquisition would form the base of TNB’s international renewable energy (RE) business and will provide the impetus for the group’s growth strategy in the European RE market going forward. He added that the acquisition was in line with TNB’s strategy to grow the RE business leveraging on existing assets, capabilities and experience. “This strategy involves TNB expanding its roles within the RE landscape and value chain, which includes developing, owning, operating and managing a portfolio of RE assets,” Amir Hamzah said in a statement Wednesday. He disclosed the initial acquisition of 80 per cent stake has contributed positively to TNB’s financials and strategic objectives. TNB has actively managed the wind farm assets since the acquisition in 2018. The assets have performed positively, contributing RM76 million (£14.4 million) in earnings before interest, tax, depreciation and amortisation (EBITDA) in 2019. The assets have shown tremendous growth from 62 per cent EBITDA margin at acquisition to 74 per cent EBITDA margin in 2019. -- BERNAMA