Tenaga Nasional Bhd (TNB)'s newly-acquired unit, Jimah East Power Sdn Bhd (JEP) will not generate any revenue until it achieves its commercial operation date for the first unit, expected from June 2019.

"Thereafter, JEP is expected to achieve positive earnings," said TNB in a filing to Bursa Malaysia today.

Yesterday, the national power utility giant completed the acquisition of a 70 percent stake in JEP for RM46.98 million.

TNB's purchase would increase its electricity generation market share to 57.7 percent, from 53.3 percent by 2020.

At the point of acquisition, TNB said JEP was already an operating company in the early stages of constructing a power plant.

JEP has been incurring costs in relation to this construction.

The company's net loss for the financial year ended March 31, 2015, stood at RM119.78 million while net book value of assets under construction amounted to RM864.81 million.

Incorporated by 1Malaysia Development Bhd (1MDB) and Mitsui & Co Ltd on July 5, 2013, JEP acted as the special purpose vehicle company for the development of the coal-fired power plant in Mukim Jimah (Project 3B).

On July 3, TNB entered into a share sale and purchase agreement with 1MDB for the acquisition of a 70 percent stake in JEP while Mitsui, via 3B Power Sdn Bhd (a local company incorporated by Mitsui) owned the remaining 30 percent equity.

As at 5 pm, TNB's share stood at RM12.54, down two sen, with 11.11 million shares changing hands.

- Bernama