TNB to acquire IT firm, SHTech

PETALING JAYA: Tenaga Nasional Bhd (TNB) has proposed to acquire the entire stake in Setia Haruman Sdn Bhd’s wholly owned information technology (IT) firm SHTech, for RM28 million.

TNB's board of directors said in a Bursa Malaysia filing that it had on Dec 7 entered into a conditional sale and purchase agreement (SPA) in relation to the sale with township developer, Setia Haruman.

Following the completion of the proposed acquisition, SHTech will become a wholly-owned subsidiary of TNB, which will continue to carry out the IT firm’s existing business.

“Upon the completion of the proposed acquisition, SHTech will become a wholly-owned subsidiary of TNB and thereafter will continue to carry out the existing business of SHTech as an IT related services provider," TNB said.

The purchase is to be satisfied in cash generated from internal funds.

Commenting on the proposed acquisition, TNB said Reimagining TNB is a strategic initiative introduced to empower TNB to pursue further growth in complementary and strategic service offerings.

"Under this initiative, TNB plans to venture into various services such as Smart Meters, Smart Homes, Smart Building, Smart Industries and Smart Cities,” it said.

The proposed acquisition which is expected to be completed in the first quarter of 2018, will not affect TNB's earnings for its financial year ending Dec 31, 2018.

TNB's shares fell 0.39% to close at RM15.52 with some 19.92 million shares done, on Friday.