KUALA LUMPUR (March 13): Pimpinan Ehsan Bhd has added to its regularisation plan by entering into a third supplemental agreement in relation to the proposed acquisition of reNIKOLA Holdings Sdn Bhd and its subsidiaries, to include the purchase of an additional renewable energy (RE) asset for RM13.9 million.
The cash company said it entered into the agreement with the vendors — B.Grimm Power (Malaysia) Sdn Bhd, reNIKOLA Sdn Bhd, Boumhidi Adel and Tengku Zaiton Ibni Sultan Abu Bakar — on Monday (March 13) for the proposed acquisition of Idiwan Solar, which operates a solar photovoltaic power generation project in Machang, Kelantan.
The solar plant has an aggregate capacity of approximately 45 megawatts direct-current (MWdc) and achieved initial operation in January 2023.
“With these changes, Pimpinan Ehsan’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,” it said, adding that all five are in commercial operation, with an aggregate solar generating capacity of about 178 MWdc.
The company continued that it will also acquire three entities which own the parcels of land on which the RE assets sit, as well as several newly incorporated subsidiaries of reNIKOLA, which are all intended to venture into the RE business.
With the additional acquisition of Idiwan Solar, the total purchase consideration for the RE assets under its proposed regularisation plan totals RM339.4 million, to be satisfied via the issuance of 144.9 million new shares at an issue price of RM1.07 per share, and 143.3 million new shares at RM1.2867 apiece.
Pimpinan Ehsan noted that the regularisation plan would see B.Grimm Power emerge as a substantial shareholder in Pimpinan Ehsan. B.Grimm Power is a wholly owned subsidiary of Thailand-listed B.Grimm Power Public Co Ltd with a market capitalisation of 105.6 billion baht (RM13.5 billion).
The proposed regularisation plan is to also include a proposed private placement of up to 80 million shares representing 22.4% of its enlarged capital at an issue price to be determined later, as well as a one-to-two subdivision of Pimpinan Ehsan shares.
Pimpinan Ehsan chairman Jonathan Law Ngee Song said that together with reNIKOLA, the company has mapped out its growth direction beyond the regularisation plan with more green asset acquisitions in the pipeline.
Boumhidi, who is reNIKOLA’s managing director, said the company has been looking at other opportunities in the RE industry to capitalise on, adding that it is 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 5.6MW of installed capacity, having secured the bids from the Sustainable Energy Development Authority not too long ago.
“We have already signed the RE power purchase agreements with Tenaga Nasional Bhd (TNB) as the off-taker,” he added.
Pimpinan Ehsan said that barring any unforeseen circumstances, the proposed regularisation plan is expected to be completed by the fourth quarter of 2023, subject to the approvals of the Securities Commission, Bursa Malaysia, Ministry of International Trade and Industry, Minister of Energy and Natural Resources, Energy Commission and TNB, as well as its shareholders.
Shares in Pimpinan Ehsan closed unchanged at RM1.24, giving the company a market capitalisation of RM85.72 million.