Ranhill eyes development of Aussie power station via acquisition

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KUALA LUMPUR (Nov 20): Ranhill Holdings Bhd is acquiring Australia's Northern Power Group Pty Ltd (NPG) for A$3.2 million in order to procure participation in a new power project in the Northern Territory, Australia.

NPG owns 100% equity interest in Northern Power Opco Pty Ltd (NPO), a special purpose vehicle incorporated to undertake the proposed development of a 60-megawatt (MW) gas-fired power generating station in the Northern Territory.

In a filing with Bursa Malaysia today, Ranhill said its wholly-owned subsidiary Ranhill Capital Sdn Bhd has entered into a conditional share sale agreement (SSA) with Power PI Group Pty Ltd (Australia), FTP Superannuation Pty Ltd (Australia) and PRH Retirement Pty Ltd (Australia) for the proposed acquisition.

NPG will become a wholly-owned subsidiary of Ranhill Capital Sdn Bhd upon completion of the acquisition.

"Ranhill will make the necessary announcement to Bursa as and when there are material developments on the power project," it said.

As at June 30, 2016, NPG has net liabilities of A$563,169.

Ranhill noted that the purchase consideration will only be payable upon NPG and/or NPO meeting the conditions precedent under the SSA that include:

NPG and/or NPO entering into a SPA of electricity with Jacana Energy or other electricity retailers with terms and conditions approved by the purchaser at an agreed tariff per kilowatt-hour (KWh) for not less than 15 years for 60MW capacity at 60% capacity factor; and NPG and/or NPO entering into an SPA of natural gas with a gas supplier to the project with terms and conditions approved by the purchaser at an agreed price per GJ for the full duration of concession.

Ranhill shares closed unchanged at 74 sen today, with 380,800 shares done, giving it a market capitalisation of RM657.35 million.