by BERNAMA/ pic credit: YINSON
YINSON Holdings Bhd’s unit, Yinson Renewables (S) Pte Ltd, has acquired 82.95 million ordinary shares in India’s solar energy company, Rising Sun Energy Pte Ltd, representing 57.5% of the company’s issued and paid-up share capital, for RM61.39 million.
In 2019, Yinson Holdings established a renewable energy (RE) business segment with a longterm objective to build a global business operating RE generation asset to support its vision of becoming a global energy solutions provider.
“The drivers behind this move are two-fold. Firstly, it diversifies the business footprint, with the potential to generate profitable revenue streams from an energy segment unrelated to oil and gas, thereby strengthening the group.
“Secondly, it is a strong and clear fit with Yinson’s sustainability goals with a minimal carbon footprint and ability to provide distributed energy to remote communities or developing countries,” it said in a Bursa Malaysia filing.
The transportation and logistics company said the proposed acquisition is in line with Yinson’s vision, plus, it secured the first asset in Yinson Renewables portfolio and provides an initial base for further growth in operational renewable assets.
The acquisition also enables Yinson to leverage the track record and reputation of the Rising Sun Energy team that constructed and operate the solar plants.
“As for India, it is one of the world’s most promising markets for solar energy with the Indian government having committed to reducing dependence on fossil energy and thus presents vast market entry opportunities for investors.
“In addition, the National Solar Mission, an initiative of the Indian government has set a target for solar capacity to reach 100GW by 2022 from its current capacity of 30GW as at July 31, 2019,” Yinson said.
The proposed acquisition, financed through internally generated funds, is not expected to have any material effect on the company’s earnings per share for the financial year ending Jan 31, 2021, as it is only expected to be completed by the fourth quarter of 2020.