KUALA LUMPUR: Tenaga Nasional Bhd’s wholly-owned Tenaga Wind Ventures UK Ltd has completed its acquisition of 80 per cent stake for £77.37 million (RM417.75 million) in two United Kingdom renewable energy companies; GVO Wind Ltd and Bluemerang Capital Ltd.
In an exchange filing today, TNB said the acquisitions were completed through two share purchase agreements with Georg von Opel and Tanzanite B.V. & Catalin Breaban, respectively.
The national utility company said the acquisition will add about 26.1 megawatts (MW), raising its total international renewable energy portfolio of about 280MW.
TNB noted that the two companies own 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.
“The purchase of 80 per cent equity is based on the agreed and fixed enterprise value (EV) of £171.23 million (RM924.54 million) for 53 wind turbines.”
It added that the deal is also based on net debt and working capital adjustment at completion.
TNB said the acquisition is part of its Five-Year International Expansion Roadmap and is funded through a combination of internally generated funds and borrowings.
“Acquiring the onshore wind assets is also in line with our strategy on renewable energy (RE) expansion under Reimagining Tenaga strategy to position TNB as one of the top global utility players by 2025.”
TNB intends to grow its RE portfolio to an optimal size via greenfield development or acquiring other RE portfolio of similar or complementary technology.
The company also intends to develop its human capital as part of this acquisition by accelerating the training and exposure of its personnel in RE operations, particularly in wind turbines operations.
“Operating medium sized wind turbines in a developed market will reduce the risks TNB faces in its learning curve to build a compelling RE track record.”
TNB said it will be able to experience first-hand the changes in technology and market trends in a developed economy.
The company noted that the acquisition of an operating wind portfolio is a low risk investment as there is no exposure to planning and construction risk.
“The wind portfolio comprised young assets, with an average age of 2.5 years with an estimated useful life of up to 25 years.
TNB said the average revenue is about £223 per MW hour, significantly higher than the average values of other similar RE support mechanisms across the UK and Europe.