PTT Public Company Limited (PTT) announced the Board of Directors Meeting held on 18 November 2020 has approved the acquisition of Global Renewable Power Company Limited (GRP)’s ordinary shares through the company’s subsidiary, namely PTT Global Management Company Limited (PTTGM), totaling 4,655,000 shares at par value of Baht 100 per share with the total purchased value of approximately Baht 693 million.
Currently, GRP is a wholly owned subsidiary of Global Power Synergy Public Company Limited (GPSC). As a result, after the acquisition, PTT will hold 50% shareholding of the registered capital in GRP through PTTGM, and GPSC will hold 50% shareholding of the registered capital.
PTT will undertake the share acquisition transaction upon the completion of the Conditions Precedent, as specified in the Share Purchase Agreement e. g. the relevant regulators have confirmed the receipt of notification for acknowledgement, or receipt of the waiver in writing by the relevant parties in the case that any Conditions Precedent are not completed. In addition, the acquisition of GRP shares from GPSC is expected to be completed by the first quarter of 2021. After completion of the share acquisition, GRP shall remain a subsidiary of PTT.
The objective of the acquisition of GRP’s shares is a part of PTT’s expansion in international renewable energy power plants, which focus on solar energy production businesses and wind energy production businesses.
In this regard, such share acquisition is in accordance with PTT Group’s strategic plan to become a leader in the renewable energy or green energy sectors, which to expand its business and investment portfolio, to enhance its competitiveness in the renewable energy, as well as to achieve the group target of the renewable power output capacity of 8,000 megawatts within 2030. The business operation of GRP shall be managed by the GRP’s Board of Directorsof which shall be jointly appointed by PTT and GPSC, which will undertake their duties with due consideration for the utmost benefits of GRP.
However, the joint investment in GRP by PTT and GPSC will not cause any changes in the business operation of GPSC which is the Power Flagship of PTT Group in electricity and public utility business.
Currently, GRP has investments in 9 projects involving solar power plants in 4 provinces, namely Lopburi, Suphanburi, Pichit, and Khon Kaen, with the total installed capacity of 39.5 megawatts, which all commenced their commercial operation since 2014 and 2015.
In addition, the Board of Directors Meeting on the same day has approved PTT to provide financial assistance in the form of a loan to GRP according to shareholding proportion after the acquisition of 50% of GRP’s registered capital by PTTGM through PTT Treasury Center Company Limited (PTT TCC), a subsidiary of PTT, with the credit limit in proportion to the shareholding of approximately Baht 834 million.