PIMPINAN EHSAN INKS SHARE SALE AGREEMENT TO ACQUIRE RENEWABLE ENERGY COMPANY, reNIKOLA HOLDINGS, FOR RM373 MILLION
Kuala Lumpur, 24 May 2021 – Main Market-listed Pimpinan Ehsan Berhad (“PEB” or the “Company”) announced it has, today, entered into a conditional share sale agreement (“SSA”) with renewable energy company, reNIKOLA Sdn. Bhd. (“reNIKOLA”), as well as Boumhidi Abdelali (“Adel”) and YAM Tengku Zaiton Ibni Sultan Abu Bakar, for the proposed acquisition of the entire equity interests in reNIKOLA Holdings Sdn. Bhd. (“reNIKOLA Holdings”) for a total purchase consideration of RM373 million (“Purchase Consideration”), to be satisfied by issuance of new ordinary PEB shares at RM1.07 per share (“Proposed Acquisition”).
The SSA is entered into pursuant to the Heads of Agreement inked earlier on 19 February 2021. reNIKOLA Holdings is proposed to comprise the following wholly-owned companies:-
(i) reNIKOLA (Arau) Sdn. Bhd.; (ii) reNIKOLA (Gebeng) Sdn. Bhd.; (iii) reNIKOLA (Pekan) Sdn. Bhd.; (iv) reNIKOLA Solar Sdn. Bhd.; and (v) reNIKOLA (BKH) Sdn. Bhd.. (collectively known as the “Acquiree Companies”)
The Purchase Consideration was arrived at on a “willing buyer-willing seller” basis based on the Acquiree Companies’ fair equity value of RM377 million.
Pimpinan Ehsan buys renewable energy firm for RM373mil May 24, 2021 ------------------------------------------------------------------ KUALA LUMPUR: Pimpinan Ehsan Bhd is acquiring the entire stake in renewable energy company, reNIKOLA Holdings Sdn Bhd, for RM373 million.
Pimpinan Ehsan said it was a cash-rich company without any core business.
In a statement today, the company said it had today entered into a share sale agreement with reNIKOLA, reniKOLA managing director Boumhidi Abdelali and Tengku Zaiton Sultan Abu Bakar for the acquisition.
The acquisition will be satisfied by the issuance of new Pimpinan Ehsan shares at RM1.07 each.
Pimpinan Ehsan executive director Lim Beng Guan said the proposed acquisition provided the company an immediate entry point into the renewable energy industry given the expansive track record and large-scale solar assets.
"It marks a major leap forward in transforming the company into a leading renewable energy provider in the country.
"Upon the completion of the exercise, our focus would be to chart the next phase of growth with a brand-new identity.
"Our goal is to own and operate one gigawatt of renewable energy assets in the foreseeable future," he said.
Lim said to reflect its seriousness and focus, the company had formed a new board of directors comprising industry experts in the fields of energy, financing, as well as environmental, social and governance.
Abdelali said there were a lot of opportunities that the company can capitalise on in the renewable energy sector as it was still in early stages.
"The rising demand for clean energy among the multinational companies, coupled with the rollout of government-backed programmes are set to stimulate growth in the domestic market.
Going Green or Renewable ( solar) energy is vital going forward.
Malaysia-based suppliers risk RM269b by not going green: Standard Chartered Published 17 Jun 2021, 5:15 pm
A study by a banking and financial services company showed that the country’s supply chain is risking more than US$65 billion (RM269 billion) if they fail to curb their carbon emissions.
Standard Chartered said that if Malaysian suppliers fail to transition alongside their multinational company (MNC) partners, "this could mean a loss in export revenue of US$65.3 billion".
“However, the study also reveals a US$1.6 trillion market opportunity for suppliers who decarbonise in line with their MNC partners’ net-zero plans,” it said in a statement yesterday.
The study entitled “Carbon Dated”, found that 15 percent of MNCs have already begun removing suppliers that endanger their transition plans, while MNCs are expected to exclude 35 percent of their present suppliers in their transition from carbon.
“Climate change and sustainability have become key motivations across the globe and for the private sector.“A lot of companies are aligning their direction towards sustainability,”
“They have commitments of net zero carbon emissions (to achieve) within a certain number of years.”Titled “Reducing CO2 Emissions in Support of Future Sustainability”, the webinar was organised by Star Media Group, with UOB, a platinum sponsor.UOB Malaysia deputy chief executive officer Ng Wei Wei said the future for solar power was bright, and that investing in it was one of the many ways to significantly reduce the carbon footprint of businesses.
“This is because there is a strong push from the government to increase renewable energy in the country’s power capacity mix to 31% by 2025 and 40% by 2035,” she said. Ng added that international rating firm, Fitch, estimated that Malaysia’s solar capacity could quadruple to surpass 4 gigawatts (GW) in 2030, up from 996 megawatts (MW) at the end of 2020.“Solar power has become more affordable and accessible and is a reliable source of renewable energy in Southeast Asia.
Re Nikola a Pure Green ( Solar) Power player to benefit in future.
"According to Tenaga National, coal was the predominant fuel for producing electricity in Peninsular Malaysia last year, making up 65.84% of the power being generated. This is followed by gas at 29.67%, hydropower at 3.78% and solar power at 0.7%."
MALAYSIA SOLAR ENERGY MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2021 - 2026)
The solar energy installed capacity in Malaysia is expected to register a CAGR of more than 10% in the forecast period of 2021-2026, reaching 2.07 GW of installed capacity in 2026 from 882 MW in 2019.
The COVID-19 has slightly affected the solar PV installations in the country during Q1 and Q2 2020 due to the lockdown restrictions, supply chain disruptions, solar PV production, and project implementation delays. Moreover, the government also postponed ambitious solar tenders, including a tender of capacity 1 GW in 2020.
However, with the increasing investments in the renewable energy sector, and the country's efforts to shift from fossil fuel-based power generation, the solar energy market is expected to grow significantly during the forecast period.
Moreover, Malaysia's government has implemented various supportive policies and incentives for the growth of solar energy, which is further expected to drive the market.
The utility segment is expected to dominate the solar energy market in Malaysia, owing to the upcoming large-scale solar power projects in the country.
Malaysia is aiming to install 9 GW of solar energy capacity by 2050. Therefore, the country's ambitious solar energy targets coupled with business models such as solar leasing are expected to create a significant amount of opportunities in the near future.
The solar market is expected to grow significantly, owing to the supportive government policies and initiatives at different end-user segments like residential or commercial & industrial (C&I).
RE players want a floor price for solar tariff in Budget 2022
Publish date: Thu, 14 Oct 2021
KUALA LUMPUR: Renewable energy (RE) industry players have asked the government to step to set a floor price for solar tariff that is economically viable for all parties.
This is to ensure that the projects are bankable to avoid any construction halts when solar developers fail to achieve a financial close, Solarvest Holdings Bhd group chief executive officer Davis Chong Chun Shiong said.
"Furthermore, a floor price will also enhance the attractiveness of solar development projects and keep profit at a sustainable level which could spur greater investment interest for the long term,” he told Bernama.
Chong said under the Large-Scale Solar 3 (LSS3), solar tariff rates were very competitive, thus, causing delay in certain projects due to financing issues.
Solarvest also hopes the government will be able to reassess the RE quota allocation under the power generation plan.
"While we are thankful for the recently improved RE target from the previous 20 per cent by 2025 to the current 31 per cent by 2025 and 40 per cent by 2035, we still feel that the goals set are too modest, especially given the recent commitment for Malaysia to achieve carbon-neutral status by 2050.
"Thus, we hope the government will consider increasing the quota for the solar sector to somewhere around 8.0 GW by 2025 and 20 GW by 2035.
Thai-listed B.Grimm to emerge as 40.6% shareholder in Pimpinan Ehsan
November 11, 2021 00:21 am +08
KUALA LUMPUR (Nov 10): Pimpinan Ehsan Bhd is set to see Thai-listed B.Grimm Power Public Co Ltd emerge as a 40.6% shareholder in the group.
This comes just months after renewable energy (RE) firm reNIKOLA Holdings Sdn Bhd was slated to become the largest shareholder of Pimpinan Ehsan.
Pimpinan Ehsan had announced the acquisition of NIKOLA from reNIKOLA Sdn Bhd (RSB) and its vendors in a RM373 million deal back in May, to be satisfied via the issuance of new Pimpinan Ehsan shares totalling a 61.5% stake.
In a filing on Wednesday, Pimpinan Ehsan said B.Grimm via its Malaysian unit B.Grimm Power Malaysia Sdn Bhd has inked an agreement to subscribe to new shares in reNIKOLA amounting to 45% of the latter’s enlarged share capital, for RM367 million cash.
Pimpinan Ehsan would then take over B.Grimm’s stake in reNIKOLA in exchange for 285.22 million new Pimpinan Ehsan shares at RM1.28 apiece.
In total, Pimpinan Ehsan would have issued 633.81 million shares valued at a combined RM740 million in the reNIKOLA deal.
This would result in Pimpinan Ehsan remaining as the sole shareholder of reNIKOLA. Meanwhile B.Grimm will become the largest shareholder in Pimpinan Ehsan with a 40.6% stake, followed by RSB with a diluted 36.5% interest, from 61.5% initially.
Notably, RSB’s chairman Tengku Zaiton will have a 49.4% indirect shareholding in Pimpinan Ehsan.
Pimpinan Ehsan said B.Grimm, RSB and related parties intend to seek an exemption from the obligation to undertake the mandatory offer to acquire the remaining Pimpinan Ehsan shares.
rumors is in, Fast is involved in the funding part for LSSPV projects... (might be a JV with banks to fund them, or with some mega funds behind to support the EPCC / Concession Owner, funding size is around RM 800m)
~ portfolio to have 133 MWp of solar assets on completion, with mid-term target capacity of 508 MWp
Kuala Lumpur, 8 June 2022 – Main Market-listed Pimpinan Ehsan Berhad (“PEB” or the “Company”) announced today that it has entered into a second supplemental and restated share sale agreement with B.Grimm Power (Malaysia) Sdn Bhd, reNIKOLA Sdn Bhd, Boumhidi Adel and YAM Tengku Zaiton Ibni Sultan Abu Bakar (collectively the “Vendors”), in relation to the proposed acquisition of reNIKOLA Holdings Sdn Bhd and its subsidiaries (“Supplemental SSA II”).
To recap, PEB is currently classified as a Cash Company under the Main Market Listing Requirements but has charted its future direction to be a pure play renewable energy (“RE”) company. It had on 24 May 2021 announced the proposed acquisition of 100%-stake in reNIKOLA Holdings Sdn. Bhd. (“reNIKOLA Holdings”) for RM373.0 million. reNIKOLA Holdings owns solar power assets in Arau, Perlis; Gebeng, Pahang; Pekan, Pahang; and will develop a large-scale solar plant in Bukit Kayu Hitam, Kedah (pending issuance of license), all totaling 418 MWp on completion.“PEB’s Proposed Regularisation Plan is just the first step. Besides ground- mounted solar plants, we are also actively exploring opportunities for small hydro, biogas as well as other RE initiatives. We see a lot of attractive opportunities and are keen to capitalize on them, especially given our collective expertise, experience and network between PEB, reNIKOLA and B.Grimm,” Jonathan added.
On the corporate front, as part of the Proposed Regularisation Plan, there will also be a proposed share split involving subdivision of 1 PEB share into 2 PEB shares; as well as proposed private placement of up to 140 million shares, representing 16.8% of the enlarged capital of PEB at an issue price to be determined later.
“Upon conclusion, PEB would have a total solar generation capacity of 508 MWp on completion with aggregate asset value of approximately RM835.0 million (excluding the placement proceed). We believe this will put PEB in a prominent position in the RE industry,” Managing Director of reNIKOLA Holdings, Boumhidi Adel said.
Barring any unforeseen circumstances, the Proposed Regularisation Plan is expected to be completed by the end 2022, while the remaining proposals are estimated to be completed by 1st quarter 2023.
The proposals are subject to approvals from the Securities Commission, Bursa Malaysia Securities Berhad, Ministry of International Trade and Industry, Minister of Energy and Natural Resources, Energy Commission and Tenaga Nasional Berhad, where applicable, shareholders of PEB at an extraordinary general meeting to be convened, as well as any other authorities or parties, if required.
The Company had, on 29 June 2022, received a copy of Writ of Summons and Statement of Claim dated 27 June 2022 (“Suit”) from one Kazuomi Kaneto and DPI Solar 1 Pte Ltd (“Plaintiffs”) alleging that the Company had, among others, the following:-
procured and induced the breach of fiduciary duties and/or trust of the relevant defendants (not the Company) owed to the Plaintiffs; wilfully and recklessly failed to make such inquiries as an honest and reasonable man would make of, the dishonest and fraudulent designs of the relevant defendants (not the Company); unlawfully conspired to injure the Plaintiffs by unlawful means; and wrongfully and/or unlawfully interfered with the Plaintiffs’ trade.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....