The divestment was carried out by TNB’s wholly owned subsidiary, TNB Topaz Energy Sdn Bhd (TNBTE).

TNB said the divestment was driven by its strategy to streamline its international portfolio, defocusing on India and shifting its efforts to pursue growth in focus markets such as the UK, Europe and Southeast Asia.

“The divestment is also consistent with TNB’s initiatives to seek monetisation options for its assets in India and other non-focus markets,” the utility giant said in a filing with Bursa Malaysia today.

On Dec 10, 2018, TNBTE inked an agreement to subscribe to CCD issued by GBHH, a subsidiary of GMR Energy Ltd, for 2.256 billion rupees (about RM133.2 million). The CCD, with a tenure of 30 years, was to be converted into an equity stake of about 30% before the end of the tenure.

On April 5, 2019, TNBTE subscribed into Tranche 1 of the CCD investment for 1.056 billion rupees (RM62.36 million).

TNB said the project was expected to start commercial operations by October 2019, but its commissioning was delayed due to unforeseen circumstances.

Following the delay in project completion, TNBTE did not proceed with Tranche 2 of the CCD investment subscription of 1.2 billion rupees, originally scheduled by September 2019.

Subsequently, TNBTE and GMR Infrastructure Ltd, the parent company of GMR Energy, entered into the divestment.

TNB said the divestment would not have any effect on its share capital and substantial shareholders’ shareholdings, and was not expected to have a material effect on the company’s net assets and gearing.