RATCH Invests ฿25Bn to Acquire a 2,045MW Coal-Fired Thermal PP in Indonesia
To accomplish its objective of "Becoming a leading value-oriented energy and infrastructure company in Asia-Pacific," RATCH invested 25 billion baht in the acquisition of a 2,045MW coal-fired thermal power plant in Indonesia
RATCH Group Public Company Limited (RATCH) announced that the Board of Directors’ Meeting held on 24 August 2021, has granted the approval for RH International (Singapore) Corporation Pte. Ltd. (RHIS), an indirectly wholly owned subsidiary of the company, to enter into a transaction under the sale and purchase agreement for the ordinary shares in a group of companies operating the coal-fired thermal power plants with a total capacity of 2,045 MW located at Paiton Power Generation Complex in East Java, the Republic of Indonesia.
In this respect, RHIS will enter into the transaction as follows:
1) Purchase of ordinary shares amounting to 45.515% of the registered and paid-up capital of PT Paiton Energy (PE) from Mitsui & Co.,Ltd. at USD 707.20 million or equivalent to Baht 22,206.29 million.
2) Purchase of ordinary shares amounting to 45.515% of the registered and paid-up capital of Minejesa Capital B.V. (MCBV) from Paiton Power Financing B.V. at USD 53.50 million or equivalent to Baht 1,679.92 million.
3) Purchase of ordinary shares amounting to 65.00% of the registered and paid-up capital of IPM Asia Pte. Ltd. (IPM) from Paiton Power Financing B.V. at USD 48.90 million or equivalent to Baht 1,535.47 million, making up a total value of USD 809.60 million or equivalent to Baht 25,421.68 million.
The transaction will be entered into after the company has obtained the approval from the Extraordinary General Meeting of Shareholders, which will be held on 21 October 2021. The company expects to complete the transaction by March 2022.
As at June 2021, RATCH’s power generation business had a combined domestic and overseas capacity of 8,290.31MW, consisting of commercially-operated power plants of 7,052.94MW and power plants under development and construction of 1,237.37MW.
Considering that the power purchase agreements (PPAs) of some of the power plants in the group will gradually reach expiration dates over the next five years from now, RATCH has therefore set the operational goal for its power generation business to seek to expand the investment in this business both at home and abroad in a bid to maintain its capacity at 10,000MW in 2025 and to increase and compensate the missing revenue and return due to the expired PPAs as much as possible.
RATCH will accordingly implement its investment plan to achieve such a goal and its vision, which is “To become a leading value-oriented energy and infrastructure company in Asia-Pacific.”