The £470m ($605m) deal also marks TNB’s first investment in renewable generation capacity in Europe.
The acquisition was made as part of a TNB’s five-year international expansion plan, which has as one of its main objectives a target to acquire up to 250 MW of renewable energy capacity by 2020.
The acquisition was made via Vortex Solar UK, an indirect wholly-owned subsidiary of a TNB joint venture, Vortex Solar Investment, which bought a 100 per cent interest in the portfolio.
TNB has a 50 per cent shareholding in Vortex Solar Investment alongside Beaufort Investments, the investment manager of Vortex which holds the other 50 per cent.
Vortex Solar UK signed a sale and purchase agreement in January with a subsidiary of Terraform Power for the deal, which comprises 24 photovoltaic farms, making it one of Britain’s largest solar power portfolios.
TNB is one of the largest utility companies in Asia with a market capitalisation of approximately $18bn and a total power generation capacity of around 13 GW, which is predominantly in Malaysia.
TNB chief executive Datuk Seri Ir. Azman bin Mohd said the deal was “a rare opportunity to acquire a sizeable solar power business in the UK. The acquisition also helps us deliver the renewable energy part of TNB’s international expansion plan more than one year ahead of schedule.”
He added: “The assets are an excellent investment and are earnings enhancing, with 80 per cent of revenue under long-term, 15-year power purchase agreements and subsidized by Renewable Obligation Certificates for 20 years.”
With the completion of the deal, TNB’s international renewable energy portfolio will have a combined net installed capacity of 252 MW following acquisitions in power companies in India and Turkey in 2016.