KUALA LUMPUR (July 9): Tenaga Nasional Bhd (TNB) has completed its RM46.98 million acquisition of a 70% stake in Jimah East Power Sdn Bhd (JEP) from state-owned strategic investment fund 1Malaysia Development Bhd (1MDB).

In a filing with Bursa Malaysia today, TNB said all the conditions precedent in the share sale and purchase agreement (SSPA) with 1MDB for the stake acquisition have been "fully satisfied and complied with”. As such, the acquisition has been completed.

Earlier this month, TNB announced it had signed the SSPA with 1MDB for the acquisition of the latter's 70% stake in JEP for RM46.98 million.

JEP is the special purpose vehicle company set up to develop the 2,000MW coal-fired power plant in Jimah, Negeri Sembilan, known as Project 3B. Japan's Mitsui Corp Ltd owns the remaining 30% equity interest in JEP.

TNB’s acquisition move follows the submission of a letter of acceptance to the Energy Commission’s addendum to the letter of award which was issued to TNB on June 29, 2015.

In a filing with Bursa Malaysia dated July 3, TNB said the 70% shareholding in JEP comprises 3.5 million shares and 259 redeemable preference shares with a premium of RM99,999 each.

TNB said it will utilise its internal funds to pay for the proposed acquisition.

JEP is now a subsidiary of TNB.

As at 3.07pm, TNB (fundamental: 1.3; valuation: 1.8) was down 2 sen at RM12.58, with 4.58 million shares done, giving it a market capitalisation of RM71 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)