KUALA LUMPUR, Nov 30 — Tenaga Nasional Bhd (TNB) has divested 100 per cent of its stake in its wholly-owned subsidiary, TNB Power Daharki Ltd (TPD) to AsiaPak Investment Ltd to accelerate renewable energy (RE) growth in focus markets for a cash consideration of US$54.5 million (RM230 million).
TPD is the holding company of TNB Liberty Power Limited (LPL) which owns and operates a 235MW combined-cycle gas turbine power plant commissioned in 2001, with a power purchase agreement expiring in September 2026.
AsiaPak, meanwhile, is a private investment company based in Pakistan and Hong Kong.
In a filing with Bursa Malaysia today, the company said TPD’s divestment comes right after the divestment of TNB’s compulsorily convertible debentures in India in August.
TNB president and chief executive officer (CEO) Datuk Baharin Din said the divestment of TPD and LPL manifests one of the planned strategic initiatives for TNB to focus on its growth markets while delivering on its global environmental, social and governance (ESG) vision.
“We have recently announced our Sustainability Pathway, a blueprint with an aspiration to achieve net-zero emissions by 2050.
“The Pathway is underpinned by our commitment to reducing 35 per cent of TNB’s emissions intensity as well as 50 per cent of our coal generation capacity by 2035,” he said.
Baharin said the divestment is a clear demonstration of TNB’s resilience and drive to preserve the value of the company’s investments amid a challenging economic environment aggravated by Covid-19.
In addition, it would move TNB a step closer to transitioning towards a new energy future of low-carbon generation consistent with its Sustainability Pathway and overall ESG vision, he said.
AsiaPak’s CEO Shaheryar Chishty said TNB’s stewardship of LPL over the years has preserved the quality of LPL’s operational performance and benefited all of LPL’s stakeholders.
“It was a privilege to have partnered with TNB on this transaction. Our shared goal in completing this divestment played a significant role in ensuring the success of this transaction,” he said. — Bernama