TNB grants SIPP Energy third extension for Johor power plant deal

PETALING JAYA: Tenaga Nasional Bhd (TNB) has granted SIPP Energy Sdn Bhd a third extension of 30 days in relation to a share sale agreement, which will see TNB take over a 51% stake in Southern Power Generation Sdn Bhd (SPG) for RM51.
The utility giant told Bursa Malaysia that upon the requisition by SIPP Energy, it had agreed to grant the extension for the fulfillment of the conditions precedent to the share sale and purchase agreement.
"The additional time is to facilitate the fulfillment or satisfaction of the remaining conditions precedent," it noted.
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.
At noon break, TNB's shares were unchanged at RM14.22 on some 232,400 shares done, giving it a market capitalisation of RM80.47 billion.