7UP Acquires 30% of “UWM” with ฿34M. Investment for Waste Management Business

On April 5, 2019, the Board of Directors Meeting Seven Utilities and Power Public Company Limited (7UP) has approved the acquisition of ordinary shares of Universal Waste Management Company Limited (UWM), formerly named Asia Recycle Holding Company Limited, through Ferrum Energy Company Limited (FER EN), a wholly-owned subsidiary of 7UP.

 

The ordinary shares of UWM will be purchased from Ms. Malinee Boonrakand to acquire 1,350,000 ordinary shares at a par value of ฿100/share, representing 30.00% of the issued and paid-up capital of UWM at a price of ฿25.00/share (25% of the par value) with a total value of THB 33.75 million.

UWM is a juristic person registered in Thailand with registered capital of THB 450.00 million with issued and paid-up capital of THB 112.50 million. UWM held 99% of the total issued and paid-up capital of Asia Recycle Technology Company Limited (ART) and Asia Waste Management Company Limited (AWM).

 

According to the Transaction, 7UP shall receive 30% of the issued and paid-up shares of UWM from Ms. Malinee Boonruk, whereas UWM is a holding company held by ART and AWM, which have had more than 10 years of experience in separating and disposing of industrial waste in landfills and which are expected to have a high volume of growth of industrial waste by utilizing appropriate waste management systems that comply with government rules and regulations. As a result, 7UP foresees an opportunity to generate sustainable income and obtain an attractive long-term return on its investment.

In addition, there are very few players who are capable of matching ART’s plan to manage and dispose of hazardous waste through high-temperature power plant(s) as well as generate and sell electricity.

 

Moreover, 7UP announced the resignation of Mr. Chanin Kiatthaveepong from the position of Deputy Chief Executive Officer, effective on April 11, 2019. Mr. Chanin Kiatthaveepong will remain as a director and the Chairman of the Executive Director. And acknowledged the appointment of Mr. Sittichai Kritvivat as Chief Executive Officer (replacing Mr. Chanin Kiatthaveepong), effective on April 11, 2019.