This article first appeared in The Edge Malaysia Weekly on March 24, 2025 - March 30, 2025

Pimpinan Ehsan Bhd (KL:PEB) (PEB), which in May 2021 proposed the injection of renewable energy assets as part of a regularisation exercise to exit PN17 status, has applied for another extension of time to complete the proposal. The current extension expires at the end of this month.

Considering recent developments, where Bursa Malaysia has been stringent in granting extensions to companies undergoing restructuring plans, PEB’s application is likely to be closely watched — especially since Bursa rejected Jentayu Sustainables Bhd’s (KL:JSB) reapplication in January to extend the period for injecting renewable assets to regularise its business.

In the case of PEB, which has cash and short-term investments of RM65 million and no business, it has proposed to acquire reNIKOLA Holdings Sdn Bhd — a company that has renewable energy assets in several states — and its subsidiaries for RM339 million to be paid for by way of PEB shares.

Under the regulation proposal, reNIKOLA will receive PEB shares priced at RM1.07 while B.Grimm — 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, PEB will also undertake a private placement of 80 million new shares.

According to PEB’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, PEB 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 PEB for RM214.5 million.

According to PEB’s announcement early this month, the company had engaged with Securities Commission Malaysia  (SC) in August 2023 over the proposal. In February 2024, the SC requested reNIKOLA to get a written clarification from the Energy Commission (EC) over the approval for the proposal.

In March, reNIKOLA wrote to the EC for a written clarification over its approval for the injection of assets into PEB. PEC said reNIKOLA had engaged with the EC since September but reNikola had yet to receive the EC’s letter and continues to engage with the commission.

The reasons for the delay are not known. In the meantime, the clock is ticking for PEB.

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