KUALA LUMPUR, Dec 11 ― Shares of Tenaga Nasional Bhd (TNB) on Bursa Malaysia slipped this morning, despite its partnership agreement to expand the renewable energy (RE) portfolio.
At 9.43am, the utility company’s stock eased two sen to RM13.54 with 1.32 million shares changing hands.
TNB yesterday announced that it had entered into an agreement with GMR Bajoli Holi Hydropower Private Limited (GBHH) of India, GMR Energy Limited (GEL) and GMR Infrastructure Limited (GIL) to subscribe to a compulsorily convertible debenture (CCD) issued by GBHH for INR2.26 billion or RM133.2 million.
Public Investment Bank Bhd, in a note said, the CCD had a tenure of 30 years and would be converted into an equity stake of 30 per cent its end.
This is to facilitate GBHH’s construction of a 180MW run-of-river hydroelectric power plant within the Himalaya Range in the Indian state of Himachal Pradesh.
“Overall progress of the project stands at 78 per cent and the plant is expected to commence commercial operations by October 2019.
“We understand the acquisition will not have a significant impact on TNB’s earnings in the near-term and therefore, maintain our forecasts and estimates,” Public Investment Bank said.
The research house has maintained its “outperform” call on TNB with an unchanged target price of RM16.86 per share. ― Bernama
