PETALING JAYA: Tenaga Nasional Bhd (TNB) entered into a sale and purchase agreement with Menteri Besar Negeri Sembilan (Incorporation) (MBINS) for the acquisition of 5% ordinary shares in Jimah Energy Ventures Holdings Sdn Bhd (JEVH) and 5% class B notes issued by Special Power Vehicle Bhd for a consideration of RM80 million.
JEVH holds a 100% stake in Jimah Energy Ventures Sdn Bhd (JEV), a special purpose vehicle company which was incorporated for the development and operation of a conventional thermal coal fired power plant located at Jimah, Port Dickson.
Edra Power Holdings Sdn Bhd owns 75% interest in JEVH, while TNB and MBINS hold the remaining interest of 20% and 5% respectively.
With the acquisition, the group will acquire MBINS’ entire stake in JEVH as well as its Class B Notes in Special Power, effective raising TNB’s stake in Jimah Energy to 25% and its Class B Notes to 25% with the remaining 75% held by Edra Power Holdings Sdn Bhd.
According to its Bursa disclosure, TNB will utilise internal funds to satisfy the RM80 million consideration.
It elaborated that the consideration sum was arrived on the basis of a valuation by an external advisor pursuant to pre-emption rights under the JEVH shareholders agreement, while the Class B notes was valued based on a discounted cash flow method after taking into account the restriction on distribution to shareholders imposed in the existing financing documents.