BGRIM Increases Portion in DTE to 96% in a Separation Entity for Financial Flexibility
BGRIM increased its holding portion in DTE to 96.25% in a business entity separation with DTE1 for flexibility in funding.
B.Grimm Power Public Company Limited (BGRIM) announced that Dau Tieng Tay Ninh Energy Joint Stock Company (DTE), a subsidiary of BGRIM with holding portion of 55.00%, operated solar power projects in Vietnam with total capacity of 420 MW (or 231 MW on BGRIM’s equity portion), comprising of Dau Tieng Tay Ninh Energy Solar Project 1 (DT1 project) with 180 MW installed capacity and Dau Tieng Tay Ninh Energy Solar Project 2 (DT2 project) with 240 MW installed capacity.
On 1 July 2021, DTE has separated the business entity with DT1 Energy Joint Stock Company (DTE1), a non-relating company, under the Vietnamese Enterprises Law, for separation of net assets of DT1 project including a power purchase agreement for the 180 MW installed capacity to DTE1 in accordance with existing holding portion.
After the separation, DTE’s ownership in DT2 project with 240 MW installed capacity remains the same while the proportion interest of BGRIM in DTE changed from 55.00% to 96.25%. Therefore, BGRIM’s equity capacity under DTE will still remain at 231 MW.
The transaction is due to the flexibility in funding and the different financial arrangements by two partners.