TNB grants SIPP Energy second extension

PETALING JAYA: Tenaga Nasional Bhd (TNB) has granted SIPP Energy Sdn Bhd a second extension to fulfil conditions under a shareholders agreement for the acquisition of a 51% stake in Southern Power Generation Sdn Bhd (SPG).

In a filing with Bursa Malaysia, TNB said upon the requisition by SIPP Energy, it has agreed to grant another extension of 30 days for the fulfillment of the conditions precedent to the said agreement.

The additional time, according to TNB, is to facilitate the fulfillment or satisfaction of the remaining conditions precedent.

TNB had on June 19 granted SIPP Energy an extension of 30 days for the fulfillment of the conditions precedent for the acquisition of a 51% equity interest in SPG.

The utility giant said it had agreed to acquire the interest in SPG for RM51 on May 3. SPG was incorporated on Aug 12, 2016 as the special-purpose vehicle for the development of a 2x720MW combined-cycle gas turbine power plant in Pasir Gudang. The acquisition will make TNB the controlling shareholder while SIPP Energy will own the remaining 49%.

The project is expected to achieve its scheduled commercial operation on July 1, 2020.

“The project will enhance TNB’s generation capacity and will give a positive impact on TNB’s earnings, and in return, will add longterm value for TNB’s shareholders,” TNB said in a filing on May 3.