KUALA LUMPUR (Jan 6): Tenaga Nasional Bhd is buying a 50% stake in Vortex Solar S.a.r.l. for GBP86 million (about RM477 million) in its planned venture into the UK’s electricity-generation market. 

In a statement to Bursa Malaysia today, Tenaga said the company through its 100%-owned subsidiary TNB International Sdn Bhd signed the subscription and funding agreement with Beaufort Investment S.ar.l. to subscribe for the new Vortex Solar shares.

Tenaga said Beaufort formed Vortex Solar to acquire TerraForm UK 2 Intermediate Holdings Ltd and TerraForm UK 3 Intermediate Holdings Ltd. Both companies own solar photovoltaic (PV) assets.
 
According to Tenaga, TerraForm UK 2 and TerraForm UK 3 hold "certain interest of solar PV project companies that own and operate solar PV projects in the UK, with a combined net installed capacity of about 365MW."

"Tenaga also wishes to announce that Tenaga has today entered into a shareholders’ agreement with Beaufort and Vortex Solar to regulate the relationship with one another in relation to Vortex Solar. The transaction is expected to be completed by the third quarter of the calendar year 2017 and will be immediately earnings-accretive,"  Tenaga said.

At 11:39am, Tenaga shares rose eight sen or 0.6% to RM13.92, with some two million shares traded. At RM13.92, Tenaga has a market capitalisation of RM78.65 billion.