Pimpinan Ehsan Berhad (PEB) announced that it has entered into a third supplemental agreement with B.Grimm Power (Malaysia) Sdn Bhd, reNIKOLA Sdn Bhd, Boumhidi Adel, and YAM Tengku Zaiton Ibni Sultan Abu Bakar, in relation to the proposed acquisition of reNIKOLA Holdings Sdn Bhd and its subsidiaries.
Under Supplemental SSA III, PEB will now include the proposed acquisition of an additional renewable energy asset, Idiwan Solar, into its proposed regularisation plan for RM13.9 million. Idiwan Solar owns and operates a solar photovoltaic power generation project in Machang, Kelantan with an aggregate capacity of approximately 45 MWdc. The solar plant has achieved its initial operation date in January 2023. In addition, PEB shall also acquire three entities that own the parcels of land on which its RE assets sit, as well as several newly incorporated subsidiaries of reNIKOLA Holdings, which are all intended to venture into RE business.
With these changes, PEB’s proposed regularisation plan now will include five solar assets instead of the earlier four. These assets are located in Arau, Perlis; Gebeng, Pahang; Pekan, Pahang; Kuala Muda, Kedah; and the latest in Machang, Kelantan. They are all in commercial operations, with an aggregate solar generating capacity of approximately 178 MWdc.
The total purchase consideration for the RE assets under the proposed rationalisation plan is RM339.4 million, to be satisfied via the issuance of 144.9 million new ordinary PEB shares at an issue price of RM1.07/share, and 143.3 million new ordinary PEB shares at an issue price of RM1.2867/share.
Chairman of PEB, Jonathan Law Ngee Song, said, “With the latest agreement, we now have a larger portfolio comprising five operational solar energy power plants with 178 MWdc generating capacity under the proposed regularisation plan. But we are not resting on our laurels. Together with the reNIKOLA team, we have mapped out our growth direction beyond the regularisation plan with more acquisitions in the pipeline. These are all green assets, such as small hydro and biogas, in addition to solar plants.”
Meanwhile, Managing Director of reNIKOLA Holdings, Boumhidi Adel chipped in, “Indeed, the team is working almost round the clock to capitalise on the many opportunities we see in the RE industry. For example, we are busy preparing bids to apply for the 600MW quota available under the Corporate Green Power Programme introduced by the Government.”
“Apart from solar, we will be developing four biogas plants in Pahang with a collective 5.6 MW of installed capacity, having secured the bids from the Sustainable Energy Development Authority (SEDA) not too long ago. We have already signed the renewable energy power purchase agreements with Tenaga Nasional Berhad as the off-taker. It is a very exciting time for us in the RE industry as we participate first-hand in contributing towards Government’s target to reach 31% of the RE mix in the national installed capacity by 2025.”
The proposed regularisation plan would also see B.Grimm Power (Malaysia) Sdn Bhd emerging as a substantial shareholder in PEB. It is a wholly-owned subsidiary of Thailand-listed B.Grimm Power Public Company Limited that has a market capitalization of THB105.6 billion (equivalent to approx. RM13.5 billion). B.Grimm Power has 737 MWp of renewable power plants in operations, consisting of solar projects in Thailand and Vietnam, wind projects and waste-to-energy projects in Thailand, and hydropower projects in Laos.
In addition, there will also be a proposed share split involving the subdivision of 1 PEB share into 2 PEB shares; as well as proposed private placement of up to 80 million shares (before the proposed share split), representing 22.4% of the enlarged capital of PEB at an issue price to be determined later.
Barring any unforeseen circumstances, the proposed regularisation plan is expected to be completed by the fourth quarter of 2023.
The proposals are subject to approvals from the Securities Commission, Bursa Malaysia Securities Berhad, Ministry of International Trade and Industry, Minister of Energy and Natural Resources, Energy Commission, and Tenaga Nasional Berhad, where applicable, shareholders of PEB at an extraordinary general meeting to be convened, as well as any other authorities or parties, if required.