Minister upholds rejection of Ranhill associate’s feed-in approval

This article first appeared in The Edge Financial Daily, on January 15, 2019.
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KUALA LUMPUR: Ranhill Holdings Bhd’s 26.7%-owned associate, Tawau Green Energy Sdn Bhd (TGE), has failed in its appeal against Sustainable Energy Development Authority’s (Seda) decision to revoke its feed-in approval.

In a filing with Bursa Malaysia, Ranhill said TGE on Oct 4 last year received Seda’s revocation, and submitted an appeal to Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin.

It added that last Friday, TGE received a letter from Yeo, rejecting the appeal and upholding the decision by Seda to revoke the feed-in approval.

Ranhill said the revocation is not material to the group as TGE does not currently contribute any revenue or profit to the group.

Ranhill acquired the 26.7% stake in TGE for RM18.7 million from one Kamarul Kamil Jumat on Sept 29, 2017.

Subsequent to Ranhill’s acquisition, Kamarul is left with a 24.3% stake, while Ramzi Sarafim Kozhya Raad is TGE’s single largest shareholder with a 40% interest. The remaining 9% stake in TGE is owned by Exergy SPA.

Ranhill said TGE had received requisite approvals to develop a 37mw geothermal power plant at Apas Kiri in Tawau, and the plant will operate using Binary ORC Technology utilising indigenous geothermal resources to be exploited at the Apas Geothermal Prospect.

Ranhill’s share price fell one sen or 0.83% to RM1.20 yesterday, giving it a market capitalisation of RM1.07 billion.