KUALA LUMPUR: Pimpinan Ehsan Bhd (PEB) has entered into a supplemental agreement to a share sale agreement (SSA) in relation to its proposed acquisition of reNIKOLA Holdings Sdn Bhd (reNIKOLA Holdings).

       In a filing with Bursa Malaysia today, the company said the supplemental SSA was signed between PEB and B.Grimm Power Malaysia Sdn Bhd (B.Grimm) which relates to the conditional inclusion of B.Grimm as an additional vendor of shares in reNIKOLA Holdings.

       Meanwhile, B.Grimm had entered into a subscription agreement with reNIKOLA Sdn Bhd (reNIKOLA) and reNIKOLA Holdings to subscribe for new shares in reNIKOLA Holdings that would represent 45 per cent of the enlarged share capital of reNIKOLA Holdings for a total cash consideration of RM367.0 million.

       The total purchase consideration for the entire equity interest in reNIKOLA Holdings by PEB will amount to RM740.0 million.

       PEB said the supplemental SSA is subject to approvals from the Securities Commission Malaysia (SC), Minister of Energy and Natural Resources, Energy Commission, Tenaga Nasional Bhd, Ministry of International Trade and Industry, Bursa Malaysia Securities Bhd, non-interested shareholders of PEB at an extraordinary general meeting, as well as any other authorities or parties, if required, by June 30, 2022.

       B.Grimm is a wholly-owned subsidiary of B.Grimm Power Public Company Ltd (B.Grimm Power), which is an investment arm of B.Grimm group that has more than 140 years of operating history dating back to 1878.

       B.Grimm Power is listed on the Stock Exchange of Thailand with a market capitalisation of THB114 billion (approximately RM14 billion).

       It is primarily involved in the development, financing, construction and operation of power plants in the ASEAN region, with expertise in natural gas, solar and hydroelectric.

       reNIKOLA chairperson Tengku Zaiton Sultan Abu Bakar said the participation of B.Grimm Power as the significant shareholder of reNIKOLA Holdings validates the direction the company is taking, focusing on pure-play long term renewable energy (RE) or RE assets.

       "We are excited with the huge potential it brings when both parties combine our strengths. We can leverage on B.Grimm Power’s strong expertise and technical know-how in the RE sector.

       "Coupled with the RM367 million cash injection from B.Grimm, we have a strong war chest to seize the tremendous growth opportunities in the RE sector," she said.

       In another filing with the bourse, the company announced it has entered into a heads of agreement (HOA) with reNIKOLA to further expand its renewable energy portfolio by up to 50MW of assets (additional assets) worth RM1.2867 per share.

       PEB's acquiree, reNIKOLA, is currently exploring acquiring additional assets via reNIKOLA Holdings or its subsidiaries.

       PEB chairman Jonathan Law Ngee Song said reNIKOLA has identified to purchase several target renewable energy assets with good prospects.

       "This is a positive development as the additional assets will further enhance reNIKOLA’s existing asset portfolio up to 468MW from the currently planned 418MW, and align with our goal at PEB to be a leading pure-play renewable energy asset owner and operator in the country," he said.

       Law added that the proposed additional acquisition would strengthen the future recurring revenue base of PEB as well upon completion of the exercise.

       On May 24, 2021, PEB announced the signing of a conditional share sale agreement with reNIKOLA, Boumhidi Abdelali (Adel) and Tengku Zaiton (vendors) for the proposed acquisition of the entire equity interest in reNIKOLA Holdings. - Bernama