Taliworks ventures into renewable energy market
01 Dec 2020
Taliworks Corporation Bhd is venturing into the renewable energy (RE) market with the proposed acquisition of four solar projects, with an aggregate capacity of 19.0 megawatt peak, within the vicinity of the Kuala Lumpur International Airport.
The infrastructure company’s wholly-owned subsidiary, Taliworks Renewables Sdn Bhd (TRSB), signed a conditional agreement with TerraForm Global Operating LP and several of its subsidiaries for the indirect proposed acquisition of majority economic interest in the solar projects, it said.
In a statement, Taliworks said as part of the proposed acquisition, TRSB would pay RM144.05 million for the purchase of the entire equity interest in the proposed projects and shareholders’ loan to be injected by TRSB for the repayment of the entire outstanding loan due to a subsidiary of TerraForm Global.
It noted the proposed acquisition was conditional on obtaining approval from the Sustainable Energy Development Authority for the change in shareholding in the project companies.
“Our strategy to venture into the RE market is finally coming together. This marks our first foray into the RE sector that ultimately provides us with a platform to participate in future renewable energy-related projects.
“With the Malaysian government’s target to increase the usage of RE in the generation mix to 20 per cent by 2025, we believe the renewable energy market has promising prospects” said executive director Datuk Ronnie Lim.
He said this transaction was in line with the group investment strategy to acquire mature brownfield assets with sustainable recurring income to support the dividend policy committed to our shareholders.
“We are also encouraged that this acquisition will be accretive to Taliworks group’s future earnings,” he added.
Taliworks is involved in water treatment and supply, waste management, tolled highway operations, and engineering and construction.