EGCO Group acquires 33.33% of additional shares in NED

Electricity Generating Public Company Limited (EGCO) has expanded its solar power business portfolio in Thailand with the acquisition of 33.33% additional shares in Natural Energy Development Co., Ltd. (NED) from Diamond Generating Asia, Limited (DGA).

This acquisition enables EGCO Group to be the major shareholder of NED with 66.66% shares and the company will recognize the immediate earnings in proportion of its additional shares. CLP Thailand Renewables Limited (CLP), the other shareholder, retains 33.33% shares.

Mr. Sahust Pratuknukul, President of EGCO Group stated:

"EGCO Group has acquired 33.33% additional shares of the total common shares in NED which owns and operates Lopburi Solar and Wang Ploeng Solar power plants from Diamond Generating Asia, Limited (DGA) of Japan’s Mitsubishi Corporation, a former shareholder."

The total consideration for the transaction was THB1,200 million (US$36.7 million), completed on February 4, 2015.

NED owns and operates two solar power plants comprising the 55 MW Lopburi Solar and the 8 MW Wang Ploeng Solar with the total installed capacity of 63 MW. NED projects, one of the world’s largest thin-film solar power plants, were built on about 1,400 rais in Lopburi province and installed more than 520,000 thin-film solar photovoltaic panels. The two solar power plants have started commercial operation and delivered electricity into the system since 2011 and 2013 respectively.

Mr. Sahust added:

“This transaction will enhance EGCO Group’s portfolio for solar power business in accordance with our investment policy for the renewable energy project development. Furthermore, the Company will recognize the immediate earnings in proportion of the additional shares from the acquisition of NED which is in line with our strategic plan to seek new investment opportunities both domestically and overseas by acquiring commercially operated power plants and investing in greenfield projects.”

Lopburi Solar power plant sells its net electricity output generated to Electricity Generating Authority of Thailand (EGAT) under a 5-year non-firm power purchase agreement (PPA) for Small Power Plant scheme (SPP). Meanwhile, Wang Ploeng Solar power plant sells its net electricity output generated to Provincial Electricity Authority (PEA) under a 5-year non-firm PPA for Very Small Power Plant scheme (VSPP). Both PPAs are automatically renewed every 5 years. In addition to the wholesale tariff, the projects receive adder 8 baht per kWh for 10 years from the COD.