B.Grimm Power Public Company Limited (SET: BGRIM) has advanced the acquisition of a substantial stake in Malaysia’s major renewable energy developing concern reNIKOLA.
Through its wholly-owned subsidiary B.Grimm Power (Malaysia) Sdn. Bhd., BGRIM on 10 June paid the initial portion of the subscription of newly issued ordinary shares of reNIKOLA Holdings Sdn. Bhd.
The payment is part of the overall RM367-million share purchase B.Grimm Malaysia agreed to subscribe with the reNIKOLA in the accord entered on 10 November 2021.
The transaction has afforded B.Grimm Malaysia a 45% holding in reNIKOLA and indirectly owning the interests of its three subsidiaries involving in solar energy development.
These companies are SBU Power Sdn. Bhd., RE Gebeng Sdn. Bhd., and Halpro Engineering Sdn. Bhd. which all together have a combined installed capacity of 88 megawatts.
Their power output is transmitted to Tenaga Nasional Berhad, Malaysia’s sole electric utility company under a 21-year supply agreement.
The reNIKOLA is a leading renewable energy group that has experienced tremendous growth in recent years.
Currently, reNIKOLA has three solar energy projects with a total installed capacity of 88 MW in commercial operation.
There is also a 90-MW solar power scheme under negotiation to acquire by reNIKOLA.
Meanwhile, the reNIKOLA is pursuing opportunities to establish solar farms with a combined generating capacity of 375 MW.
“Investing in renewable energy business in Malaysia will benefit the overall investment portfolio of BGRIM, said BGRIM President Harald Link.
“Furthermore, it will enhance BGRIM’s drive towards Net-Zero Carbon Emissions by 2050 and in line with our vision of Empowering the World Compassionately based on the principles of generosity, creating value for society and growing alongside Thailand,” he added.