TNB takes control of one of UK’s largest solar platforms
17 Sep 2020
Tenaga Nasional Bhd’s (TNB) wholly-owned subsidiary, TNB International Sdn Bhd (TNBI) has acquired the controlling equity stake in Vortex Solar Investments S.a.r.l. (Vortex Solar) from Beaufort Investments S.a.r.l, a subsidiary of EFG Hermes Holding SAE.
The proposed deal is worth £11 million (RM59.05 million).
TNB’s president and chief executive officer, Datuk Seri Amir Hamzah Azizan in a statement today said the acquisition would increase TNB’s equity interest in Vortex Solar to 55 per cent, giving TNB majority control of the company.
“The acquisition is a key milestone in TNB’s commitment to reduce its carbon footprint and grow its international renewable energy (RE) business portfolio, in line with its energy transition aspiration of becoming the leading provider of sustainable energy solutions both domestically and internationally,” he said.
Vortex Solar is one of the largest solar platforms in the UK with Renewables Obligation Certificate (ROC) subsidy scheme.
The portfolio comprises 24 operational solar farms with a total combined capacity of 365MW and has consistently produced strong results over the last two years.
“With the acquisition, TNB now has majority control of Vortex Solar, thereby further strengthening the group’s international European RE business footprint where TNB already wholly owns Tenaga Wind Ventures (TWV) UK Ltd, the largest feed-in-tariff wind portfolio in the UK,” Amir Hamzah said.
He said the acquisition forms part of TNB’s new strategy of growing its RE businesses in the UK and Europe and is a deliberate move to take control of its high performing RE assets, beginning with the acquisition of 100 per cent in TWV earlier this year.
“By leveraging on TNB’s existing capabilities and its control of TWV and Vortex Solar TNB will continue to expand in the region in line with its international RE growth strategy through the restructuring of Vortex Solar and TWV into a renewable asset company aimed at owning, operating and managing a portfolio of RE assets in the UK and Europe,” he said.
Amir said despite the challenging times caused by the global COVID-19 pandemic, both Vortex Solar and TWV’s financial and operational performances have been performing beyond expectations.
“The acquisition of Vortex Solar has contributed positively to TNB’s financials and strategic objectives,” he said.
The portfolio reported £39.1 million EBITDA in 2019 and has grown from 80 per cent EBITDA margin in 2018 to 84 per cent in 2019.