KUALA LUMPUR: Pimpinan Ehsan Bhd (PEB) had entered into a second supplemental and restated share sale agreement with B.Grimm Power (Malaysia) Sdn Bhd, reNIKOLA Sdn Bhd, Boumhidi Adel and Tengku Zaiton Ibni Sultan Abu Bakar for the acquisition of reNIKOLA Holdings Sdn Bhd and its subsidiaries.

In the agreement, PEB agreed to acquire two additional solar power assets located in Kuala Muda, Kedah and Machang, Kelantan respectively, along with the parcels of land where the assets sit.

The Kuala Muda solar power plant has a capacity of 45 Megawatt peak (MWp) and achieved commercial operation onMarch 22, 2022.

The Machang solar power plant has a similar capacity of 45 MWp with expected commercial operation by the third quarter of 2022.

In view of the latest development, PEB's acquisition plan will be divided into two segments whereby for its regularisation plan, the company will acquire four solar power plants located in Arau, Perlis; Gebeng, Pahang; Pekan; Pahang; and Kuala Muda, Kedah, with aggregate capacity of 133 MWp along with the parcel of land where Kuala Muda solar asset sits.

This includes the acquisition of three supporting companies involved in the provision of repair, maintenance and operations of solar power plants (collectively referred to as "Group Companies A").

The purchase price for Group Companies A will be RM325.5 million to be satisfied via issuance of 152.6 million new PEB shares to reNIKOLA as well as 124.8 million new PEB shares to B.Grimm.

For the second segment, PEB will acquire 51 per cent interest in the BKH solar plant, which is currently under planning phase with a capacity of 330 MWp, and Machang solar power plant of 45 MWp plus the land it sits on, for RM231.9 million to be satisfied via issuance of 214.5 million PEB shares.

In addition, B.Grimm shall inject RM214.5 million cash into reNIKOLA Holdings and in return, receive 166.7 million PEB shares.

"Over the past year, we have been working relentlessly together with the team from reNIKOLA on the transformation of PEB into a pure-play renewable energy (RE) group. We are heartened by the progress we have made thus far.

"For our proposed regularisation plan alone, we will have four solar plants with a combined 133 MWp capacity. These will be operational assets with power purchase agreements in place."

"In addition, we have an incoming strategic shareholder in the form of B.Grimm. As we leverage on their in-depth technical expertise and vast experience in green energy, we are confident that B.Grimm's entry shall accelerate our plans to be the leading RE group in the country," said PEB chairman Jonathan Law.

The proposed regularisation plan is expected to be completed by end-2022, while the remaining proposals are estimated to be completed by Q1 next year.