Sunseap currently holds a 90% stake in the five projects, Deal Street Asia reported.
Sunseap and Tenaga announced their plan to form a joint venture to participate in a tender for a Singapore government’s two-year trial to import 100MW of electricity from Malaysia.
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TNB Renewables Sdn. Bhd., a wholly-owned subsidiary of Malaysian national electricity company Tenaga Nasional Berhad (TNB), will acquire a 39% stake in five solar rooftop projects of Singapore’s leading solar energy provider Sunseap Group in Vietnam.
The projects in southern Vietnam with a total capacity of 21.6 megawatts peak (MWp) were completed in December 2020.
Sunseap currently holds a 90% stake in the five projects. After the acquisition is completed by the first quarter of this year, Sunseap will own 51% while Sun Times Energy JSC, an existing shareholder, will continue to hold 10% equity interest.
“This transaction marks the beginning of a partnership with TNB which will pave the way for a long-term business relationship between Sunseap and Malaysia’s leading utility company and TNB’s expansion into the regional solar industry,” said Frank Phuan, Chief Executive Officer of Sunseap.
TNB’s President and CEO Datuk Ir. Baharin bin Din said that this acquisition will serve as a beachhead for TNB to establish a local presence in Vietnam and expand into the rapidly growing RE and utility market in Vietnam.
Earlier on Tuesday, Sunseap and Tenaga announced their plan to form a joint venture to participate in a tender for a Singapore government’s two-year trial to import 100MW of electricity from Malaysia.
Sunseap has a pipeline of projects in Singapore, Australia, Vietnam, China, Taiwan and Cambodia.
Last year, Singapore’s state-owned investment firm Temasek Holdings and ABC World Asia, an Asia-focused impact investing private equity (PE) fund, had invested S$50 million ($36.8 million) in Sunseap. In 2019, it completed a $150-million Vietnam solar farm project which is one of the largest solar farms in the country.
Meanwhile, TNB has a presence in the UK, Kuwait, Turkey, Saudi Arabia, Pakistan, India and Indonesia. TNB targets its RE generation capacity at 8.3 GW by 2025.
By Quynh Nguyen.
Read original post on DealStreetAsia here.