KUALA LUMPUR (Nov 5): Pimpinan Ehsan Bhd (KL:PEB) said its proposed regularisation plan involving its acquisition of renewable energy group reNIKOLA Holdings Sdn Bhd is currently under the attention and review of the Ministry of Energy Transition and Water Transformation (Petra) before the ministry provides its official feedback.

Pimpinan Ehsan said it had received a notification from reNIKOLA that the latter, on Nov 5, received a letter from Petra stating that "the deputy prime minister has taken note of the matters in relation to the proposed regularisation plan", according to its filing with Bursa Malaysia.

However, Pimpinan Ehsan did not specify the matters that are being given attention and reviews by Petra.

Under Malaysia’s energy sector regulatory framework, ministerial input is required for any transaction involving the transfer or consolidation of licensed renewable energy assets. For large-scale solar (LSS) licence holders, any change in shareholding structure or controlling interest requires the prior written approval of the Energy Commission (EC).

Pimpinan Ehsan had earlier engaged with the Securities Commission Malaysia (SC) in August 2023 regarding the proposal. In February 2024, the SC requested reNIKOLA to obtain a written clarification from the Energy Commission (EC) over its approval for the asset injection.

The update comes as Pimpinan Ehsan faces the risk of delisting from Bursa Malaysia, after the bourse operator on Oct 16 rejected its application for another extension of time to complete the regularisation plan.

The company — classified as a PN16 cash company following the disposal of its earlier core assets — has been working for several years to inject income-generating solar power assets through the acquisition of reNIKOLA.

Under the regulation proposal, reNIKOLA will receive Pimpinan Ehsan shares priced at RM1.07 while B.Grimm Power Malaysia Sdn Bhd — a subsidiary of Thailand-listed B.Grimm Power Public Company and one of the vendors in the sale of reNIKOLA — will get its shares at RM1.29 each.

In addition to the share issuance, Pimpinan Ehsan will also undertake a private placement of 80 million new shares.

According to Pimpinan Ehsan’s announcement in 2021, Boumhidi Adel holds 70% in reNIKOLA while the remaining 30% is held by his spouse, Tengku Zaiton Sultan Abu Bakar.

Post the regularisation exercise, Pimpinan Ehsan has proposed to acquire reNIKOLA’s interest in a solar plant in Bukit Kayu Hitam, Kedah, for RM218 million and B.Grimm is to subscribe for new shares in the new-look Pimpinan Ehsan for RM214.5 million.

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