TNB gives SIPP another month to seal Johor Power plant deal

PETALING JAYA: Tenaga Nasional Bhd (TNB) is giving SIPP Energy Sdn Bhd a second extension to fulfill conditions under a shareholders agreement which will see TNB take over a 51% stake in a gas turbine power plant.
In a filing with the stock exchange, TNB said SIPP has another month to ensure requirements under the deal, which were not specified, are met. TNB agreed to acquire the interest in Southern Power Generation Sdn Bhd for RM51 on May 3.
SPG was incorporated on Aug 12, 2016 as the special purpose vehicle for the development of 2x720MW Combined Cycle Gas Turbine Power Plant in Pasir Gudang, Johor. The acquisition will make TNB the controlling shareholder, while SIPP will own the remaining 49%.
The project is expected to achieve its scheduled commercial operation date on July 1, 2020.
TNB's shares closed two sen lower to RM14.16 in morning trade, with some 2.7 million shares changing hands.