BGRIM acquires 70-per cent of Ang Thong Power for Bt2.5 bn
B Grimm Power Plc (BGRIM) has sealed a Bt2.52 billion deal for a 70 per cent stake in Ang Thong Power Co (ATP), a small power producer.
The acquisition, made through wholly-owned B Grimm Power (Chon Buri) 2 Co, consolidated BGRIM's outstanding portfolio to 3,019 MW and raising the total number of power plants in its network to 47.
CEO Preeyanart Soontornwata said the share purchase of ATP, which operates a 123-MW co-generation facility in Chaiyaphum sub-district, Chaiyo district of Ang Thong province, is in line with the company's on-going business expansion both at home and abroad.
The ATP interest acquired by BGRIM was held by Redman Pacific Holding Pte Ltd which is not a connected juristic person of the company.
ATP has had an accord to sell 90 MW of its power production to the Electricity Generating Authority of Thailand (Egat) for 25 years.
Preeyanart noted that there are also several projects under development and construction which will raise the company's total installed generating capacity to at least 3,547 MW in the near future.
BGRIM targets to boost its combined generating capacity to 5,000 MW in 2022 as per the power sale commitment stipulated for the period.
Regarding impact from the global economic conditions and Covid-19 pandemic, she insisted that BGRIM's income was only slightly affected, thanks to the "take-or-pay" nature of BGRIM's power sales to Egat .
Furthermore, a part of its revenue comes from renewable energy power plants which are supported by the governments in countries which it operates.
She also pointed out that 25 per cent of its total revenue comes from electricity and steam sales to industrial customers whose energy demand has not shown any sign of sagging.
BGRIM's power sales to industrial customers in the first two months of this year rose 0.8 per cent from the same period last year due to increased demand from packaging, air conditioning and other industrial segments.
BGRIM has a line-up of industrial clients with a total power purchase commitment of 31 MW with delivery to start in the second and third quarter of this year.
There is still a significant demand for reliable power supplies from BGRIM's power plants situated near them.
These industries include data centres, petrochemical industries and the manufacturers of alternative energy equipment
There are more than 1,500 industrial operators in industrial estates, where BGRIM power projects are located, but only 130 of them are being served by BGRIM, underscoring the fact that they could become new clients of the company in the future, she concluded.
