B.Grimm Power Malaysia Sdn Bhd, a 100% owned subsidiary of B.Grimm Power Plc (BGRIM), has inked agreements to indirectly purchase 40.6% in renewable energy company Pimpinan Ehsan Berhad (PEB) via a direct subscription to a 45% share in another renewable energy firm reNIKOLA.
The move aims to help reNIKOLA achieve a renewable portfolio target of above 1 gigawatt, up from the current pipeline of more than 500 megawatts.
reNIKOLA is a fast-growing renewable energy company in Malaysia with 88MW of solar plants with plans to acquire 90MW of solar plants in the near future. It has various deals with major corporations in Malaysia, including the development of a 375-MW solar plant under the corporate power purchase agreement (PPA) framework.
Harald Link, president of B.Grimm Power, said his firm shares the same values as reNIKOLA, which is to provide clean, reliable and affordable electricity.
"We see it as the ideal vehicle for us to venture into the energy sector in Malaysia. The country offers many opportunities, particularly in the renewable energy segment. We have plans to develop renewable energy power plants in Malaysia and through this acquisition we can fast-track our expansion plans in the country and build a sizeable renewable energy asset portfolio together."
Tengku Zaiton, chairperson of reNIKOLA, welcomed the news about having B.Grimm Power as a major shareholder of reNIKOLA Holdings.
"We are excited with the huge potential it brings when both parties combine our strengths. We can leverage B.Grimm Power's strong expertise and technical know-how in the renewable energy sector," she said.
"Coupled with the RM367 million cash injection from B.Grimm, we have a strong war chest to seize the tremendous growth opportunities in the renewable energy sector."
PEB chairman Jonathan Law Ngee Song said he had set a clear goal of transforming his firm into a leading renewable energy company in the region.
"We want to build the largest renewable energy asset portfolio in Malaysia. With B.Grimm Power as a significant shareholder in PEB [upon completion of the proposed acquisition] we are confident we are on the accelerated path to achieving our goal, and it certainly serves as a booster to our standing and credibility as well."
B.Grimm Power has 737MW of renewable power plants in Thailand, Vietnam and Cambodia. The plants consist of solar projects in Thailand, Vietnam and Cambodia, wind projects and waste-to-energy in Thailand and hydropower projects in Laos.