BUSINESS

TNB SLIPS ON BURSA DESPITE RE AGREEMENT ANNOUNCEMENT

11/12/2018 10:14 AM

KUALA LUMPUR, Dec 11 (Bernama) – Shares of Tenaga Nasional Bhd (TNB) on Bursa Malaysia slipped this morning, despite its partnership agreement to expand the renewable energy (RE) portfolio.

At 9.43 am, the utility company’s stock eased two sen to RM13.54 with 1.32 million shares changing hands.

TNB yesterday announced that it had entered into an agreement with GMR Bajoli Holi Hydropower Private Limited (GBHH) of India, GMR Energy Limited (GEL) and GMR Infrastructure Limited (GIL) to subscribe to a compulsorily convertible debenture (CCD) issued by GBHH for INR2.26 billion or RM133.2 million.

Public Investment Bank Bhd, in a note said, the CCD had a tenure of 30 years and would be converted into an equity stake of 30 per cent its end.

This is to facilitate GBHH’s construction of a 180MW run-of-river hydroelectric power plant within the Himalaya Range in the Indian state of Himachal Pradesh.

“Overall progress of the project stands at 78 per cent and the plant is expected to commence commercial operations by October 2019.

“We understand the acquisition will not have a significant impact on TNB’s earnings in the near-term and therefore, maintain our forecasts and estimates,” Public Investment Bank said.

The research house has maintained its “outperform” call on TNB with an unchanged target price of RM16.86 per share.

-- BERNAMA

 


BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 IFLIX channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.

Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial

© 2024 BERNAMA   • Disclaimer   • Privacy Policy   • Security Policy