Eastern Power Group Public Company Limited (EP) announced the Board of Directors’ Meeting held on August 7, 2020 has approved EPVN W2 (HK), a company registered in Hong Kong Special Administrative Region of the People’s Republic of China, to enter into a Share Purchase Agreement to acquire 90% stake of Chu Prong Gia Lai Wind Power Joint Stock Company (Project Company TN), which is the owner of Che bien Tay Nguyen Wind Power Plant Project (Project TN), a project with a total installed capacity of 50 MW, , for the consideration of USD 7,875,000 or approximately THB 245,778,750.
In addition, EP has approved EPVN W2 (HK) to enter into a Share Purchase Agreement to acquire 100% stake of Chu Prong Gia Lai Wind Energy Joint Stock Company (Project Company MN), which is the owner of Phat Trien Mien Nui Wind Power Plant Project (Project MN), a project with a total installed capacity of 50 MW, for the consideration of USD 8,750,000 or approximately THB 273,087,500.
In this regard, EP has based its calculation of the above transaction size on board of directors’ approval to purchase the ordinary shares (paid-up) of Project Company TN and Project Company MN only, in order to acquire the rights in the two power purchase agreements. The board of directors has not approved the EPC Contracts due to high cost of the construction and various details are required to be studied along with other conditions of the contracts causing uncertainty in the value of the investment in such Projects.
Nevertheless, if the board of directors of EP has resolved and approved such EPC Contracts, the company will calculate the value of the construction of the power plant in combination with the value of the share purchase and will proceed further to provide detailed disclosure of the information including the calculation of the size of the transaction for the acquisition of assets of EP.