KUALA LUMPUR (Sept 28): Tenaga Nasional Bhd (TNB) has paid RM283 million cash to buy an additional 19% stake in Southern Power Generation Sdn Bhd from SIPP Energy Sdn Bhd, a company which is controlled by the Sultan of Johor.

In a bourse filing, TNB said this would raise its stake in Southern Power to 70% from 51% currently, while SIPP Energy's stake would fall to 30% from 49%.

Southern Power is a special purpose vehicle set up for the development of a combined cycle gas turbine power plant in Pasir Gudang, Johor.

TNB said the major construction works for the project have been completed, with overall project progress standing at 99.3% as of end-August.

As part of the deal, TNB will also acquire 36.79 million redeemable preference shares (RPS) in Southern Power from SIPP Energy.

The utility giant will be using internally generated funds to fund the acquisition of the stake and the RPS.

"The acquisition will not have any effect on the issued share capital and the substantial shareholdings of TNB.

"Based on the latest consolidated statements of TNB for the financial year ended Dec 31, 2019, the acquisition is not expected to have a material effect on the net assets and gearing of TNB," the group added.

Shares in TNB finished four sen or 0.37% lower at RM10.84 today, valuing the group at RM61.84 billion. The counter saw 3.65 million shares traded.