TNB scraps bid for Ireland’s Bord Gais unit
KUALA LUMPUR: Tenaga Nasional Bhd (TNB), the country’s biggest energy producer, has scrapped its bid for a unit of Ireland’s state-owned gas company Bord Gais Eireann as it focuses on building power plants at home.
State-controlled TNB submitted a non-binding offer for Bord Gais’s energy division seeking to expand earnings and reduce its reliance on regulated business in Malaysia, chief financial
officer Fazlur Rahman Zainuddin said in an interview here, yesterday. That move appears “a little advanced” for the company currently, he said.
Ireland, which agreed to sell the asset as part of its international bailout in 2010, said last month the unit will be sold before year-end and the process is under way. TNB, which gets all its revenue from Malaysia, plans to spend as much as RM3 billion a year on new plants until 2017 in addition to annual capital expenditure, Fazlur said.
“We have been invited to bid but we feel that at this point in time, this may not be the one to fit us as we have other priorities,” he said. “Given the focus on new power plants and the experience we have in the regulated business here, we feel the focus should be in Malaysia.”
The company’s annual capital expenditure is RM4.5 billion to RM5 billion, Fazlur said. Bloomberg
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