KUALA LUMPUR (July 17): Tenaga Nasional Bhd's (TNB) expansion overseas over the years to Turkey, the Middle East, India and most recently the United Kingdom are strategies which the government supports as it helps raise its value as a listed entity.
Prime Minister Datuk Seri Najib Razak said TNB should continuously look at increasing its value in Bursa Malaysia where its current market capitalisation stands at RM80 billion.
TNB started its footprint expansion beginning last year with the 30% acquisition of GAMA Energi, Turkey, and GMR Energy, India, respectively for US$300 million.
"While TNB's value increases, so would the weightage of its brand value. Therefore, Khazanah Nasional Bhd, as its major shareholder, would earn big returns.
"TNB's strategy of becoming a regional and global player fits well with the government. We will always protect and support TNB's policies based on its goals of raising its value as a corporation, and supplying electricity to Malaysians," he said in his speech at TNB's Hari Raya Aidilfitri open house today.
Najib also urged TNB to continuously innovate and reinvent, and check its weaknesses and strength to remain at forefront of competition.
He cited TNB's 24th ranking in London-based Brand Finance's Global Top 50 utility brands in 2017 or Utilities 50 (2017) in March from the 39th placing last year.
TNB reportedly said the ranking represented a jump of 33% for its brand value of US$1.58 billion from US$1.19 billion in 2016.
"TNB's ranking was achieved although more than half of the brands in 2017's list declined in value. They include top three utility brands, France's Engie SA, and Électricité de France SA, and Italy's Enel SpA.
"This means TNB's strategy lately is successful and so, it should not remain static and still but continue to improve its quality as a staff and a corporation," he said.
TNB shares closed down two sen or 0.14% to RM14.18 for a market capitalisation of RM80 billion.