By Othman Abu Bakar
KUALA LUMPUR — May 9, 2016: Tenaga Nasional has proposed to take up a 30 per cent stake in a power company in India, GMR Energy Limited (GEL), for US$300 million in cash.
Tenaga informed Bursa Malaysia today that its wholly owned subsidiary, Power and Energy International (Mauritius) Ltd. (PEIML), will subscribe for the stake.
GEL has a sizeable power portfolio comprising an operating capacity of 2,300 megawatts while a facility for another 2,330 MW is being built. The portfolio also has a balanced fuel mix of coal, gas and renewable sources of hydro and solar energy.
The statement said GEL has visibility on cashflows from strong operational portfolios contracted under long term power purchase agreements and has 83 per cent of its operational capacity contracted under long-term PPAs for the next five years, providing a stable, de-risked cashflow profile.
Tenaga considers the proposed subscription as in line with its five-year international expansion roadmap, which is targeted to secure new generation capacity internationally.
In another anouncement today, Sunsuria Berhad stated that it will jointly develop some land in Sepang with a Taiwanese company into a theme-designed mixed development comprising serviced apartments, retail shops, a mall and a boutique hotel.
An indirectly owned subsidiary, Sunsuria City Sdn. Bhd. (SCSB), and a directly owned subsidiary, Sunsuria Gateway Sdn. Bhd. (SGSB), will undertake the project with Welcome Global Co. Ltd., a wholly-owned subsidiary of Ever Rich Land Co. Ltd. based in Taiwan.
The freehold land measures approximately 8.48 acres. SCSB is the registered proprietor of the land.
It is situated within Sunsuria City, the flagship integrated township development project of Sunsuria and its group of companies, and spans over 525 acres in Salak Tinggi. At the heart of Sunsuria City is the Xiamen University Malaysia campus, the first overseas campus of a Chinese university.
Sunsuria said the estimated total gross development value of the project is approximately RM694 million. The estimated total gross development cost has yet to be determined and shall be finalised later. The development of the project is targeted to start next year and ready by 2023.