EPCO Books ฿1.26bn after Completing the Sale of 2 Power Plants in Vietnam!

Eastern Printing Public Company Limited (EPCO) has announced that the company has completed the deal of selling the shares and debt of Solar Power Management (Thailand) Co., Ltd. (SPM) to and BG Container Glass Public Company Limited (BGC).

 

The deal is in accordance with the resolutions of the meeting of the Board of Directors on September 6, 2019, approving Eastern Power Group Public Company Limited (EP), a subsidiary of EPCO (whereby EPCO holds 75% of the total shares in EP), to sell the aforementioned asset to BGC in an approximate amount of THB 1,259 million.

Before the transaction, EP holds 100% of the total shares in SPM while SPM holds 67% of total shares in PhuKhanh Solar Power Joint Stock Company (PKS), a subsidiary in Socialist Republic of Vietnam. PKS operates two solar power plants i.e. Project Xuan Tho 1 and Xuan Tho 2, with a total installed capacity of 99.216 MW in Phu Yen province, Vietnam.

 

EP and BGC have entered into Sale and Purchase Agreement (SPA) dated September 6, 2019. However, the contractor of both projects have not finished the construction and some repairing works. Therefore, EP and BGC have agreed to amend the payment installment of the purchase price set forth in the SPA by reserving estimated 15% of the purchase price until the contractor companies of both projects have finished the construction and the repairing works.

Accordingly, as of December 27, 2019, EP has transferred debts and shares to BGC and EP has received the purchase price for the sale of shares and debt in the amount of THB 1,070 million whereas BGC will pay all outstanding amounts in the final installment.

BGC will make the third payment within three business days following the date on which (a) BGC and EP have agreed on the audit of consolidated financial statement of SPM and PKS, and (b) the owner’s engineer has confirmed in writing that construction and repairing works have been completed as agreed, which is expected to be within March 2020.

Nevertheless, in the event that the fee for construction and repairing works exceed the agreed amount, BGC is entitled to deduct some of the construction and repairing costs for the remaining works from the final installment payments.