Tenaga Nasional Berhad and EFG Hermes complete acquisition of 365 MW UK solar portfolio

EFG Hermes and Malaysian and Tenaga Nasional Berhad (TNB), have reached the closure on its 100% acquisition of a 365 MW portfolio of 24 operational solar assets in the United Kingdom from TerraForm Power.

The acquisition was made via Vortex Solar UK Limited wich is 50/50 owned by TNB and EFG Hermes. The total transaction cost has reached £470 million (US$605 million).

Vortex Solar UK Limited signed a Sale and Purchase Agreement in January with a subsidiary of Terraform Power Inc. to acquire the solar portfolio which includes 24 solar photovoltaic farms, one of Britain's largest solar power portfolios.

Datuk Seri Ir. Azman bin Mohd, TNB's CEO, said: 

"We are pleased to complete this acquisition, which was a rare opportunity to acquire a sizeable solar power business in the UK. The acquisition also helps us deliver the renewable energy part of TNB's international expansion plan more than one year ahead of schedule."

"The assets are an excellent investment and are earnings enhancing, with 80% of revenue under long term, 15-year power purchase agreements and subsidized by Renewable Obligation Certificates for 20 years."

Karim Moussa, Head of Asset Management and Private Equity at EFG Hermes commented:

“In well under four years, Vortex evolved rapidly to become one of the largest renewable energy-focused investment vehicles in Europe with a wide range of solar and wind assets spreading across six countries in Europe, generating more than 1,500 GWh of renewable energy which is enough to power more than 350,000 households each year.”