Vietnam is expected to expand its use of solar power and other renewable energy sources. © Reuters
The projects in southern Vietnam, with a total capacity of 21.6 megawatts peak (MWp), were completed in December.
Sunseap currently holds a 90% stake in the five projects. After the acquisition is completed by the first quarter of this year, Sunseap will own 51%, while Sun Times Energy JSC, an existing shareholder, will continue to hold a 10% equity interest.
"This transaction marks the beginning of a partnership with TNB which will pave the way for a long-term business relationship between Sunseap and Malaysia's leading utility company, and TNB's expansion into the regional solar industry," said Frank Phuan, CEO of Sunseap.
TNB's President and CEO Datuk Ir. Bahrain bin Din said the acquisition will serve as a beachhead for TNB to establish a local presence in Vietnam and expand into the rapidly growing renewable energy and utility market in Vietnam.
Earlier on Tuesday, Sunseap and Tenaga announced plans to form a joint venture to participate in a tender for a two-year trial by Singapore's government to import 100 MW of electricity from Malaysia.
Sunseap has a pipeline of projects in Singapore, Australia, Vietnam, China, Taiwan and Cambodia.
Last year, Singapore state-owned investment firm Temasek Holdings and ABC World Asia, an Asia-focused impact investing private equity fund, invested 50 million Singapore dollars ($36.8 million) in Sunseap. In 2019, it completed a $150 million Vietnam solar farm project, one of the largest solar farms in the country.
Meanwhile, TNB has a presence in the U.K., Kuwait, Turkey, Saudi Arabia, Pakistan, India and Indonesia. TNB hopes to raise its renewable energy generation capacity to 8.3 GW by 2025.