Malaysia?s Tenaga ups stake in TNB Coal

Malaysian state utility firm Tenaga Nasional Bhd announced Tuesday it had increased its equity stake in TNB Coal International Ltd (TCIL) to 92.5 percent from 70 percent earlier by acquiring the interest from an individual shareholder, Nik Sallahuddin Nik Hussein, for a total purchase price of RM26.59 million.

Under the share purchase agreement, Tenaga said in a statement on June 21 that it would acquire 22,500 shares of US$1 (RM3.80) each and 3.80 million loan stocks of US$1 each. Tenaga would also have to fork out RM8.20 million as shareholder?s advance, which was made earlier by Nik Sallahuddin to TCIL.

The agreement would have to be met within six months from the date of the signing of the agreement dated June 21, 2005. It would need Bank Negara and TCIL?s lenders approval.

The move by Tenaga came following the failed attempt by debt-laden Techventure Bhd?s all-cash offer proposal to takeover the former?s 70% stake in TCIL. Earlier, Techventure under the ex-directorship of Sarawakian-born Mark Ling revised its earlier proposal of issuing Techventure shares.

Post acquisition, Nik Sallahuddin would hold the remaining 7.5% stake in TCIL with Tenaga holding 92.5%. Tenaga said the acquisition is considered as a viable investment and in the best interest of the group.

TCIL owns PT.Dasa Jasa Ekatama, a coal concession in South Kalimantan with annual production of around 1.5 million tons. The mine supplies coal to Tenaga?s power plants in Malaysia. (alex)