BAFS Invests ฿1.7Bn in Acquiring “PDI”’s Solar Farms, Expecting Deal to Complete by 1Q21

Bangkok Aviation Fuel Services Public Company Limited (BAFS) announced that the (Special Meeting) of the Board of Directors, convened on December 3, 2020, has passed the resolution to approve BAFS Clean Energy Corporation Company Limited (BC), a subsidiary of the Company, purchases ordinary shares of a group of three companies whose business is to operate a solar energy power plant; this group comprises ATC Enviro Co., Ltd. (ATCE), PDI Mae Ramat Co., Ltd. (PDIMR), and P.P. Solar (Nong-No) Co., Ltd. (PPS). 

 

BC will purchase (1) 100% of ATCE’s total number of shares, (2) 100% of PDIMR’s total number of shares, and (3) 100% of PPS’s total number of shares from PDI Energy Company Limited (PDIE), a subsidiary of Padaeng Industry Public Company Limited (PDI), which is considered a connected person of the Company. The total transaction value is THB 1,704.67 million.

 

ATCE operates five solar energy power plants with a total capacity of 29 megawatts (Mwp). ATCE 1-2 Power Plants and ATCE 3 Power Plant are located in Prachin Buri province, and ATCE 4-5 Power Plants are located in Samut Sakhon province. ATCE entered a Power Purchase Agreement with the Provincial Electricity Authority (PEA) with a period of 25 years from December 30,2015 (for ATCE 1-2 and ATCE 4-5 Power Plants) and from April 27,2016 (for ATCE 3 Power Plant) (which is the Commercial Operation Date). Currently, the project construction has been completed, and the plants are being commercially operated. 

 

PDIMR operates one solar energy power plant with a total capacity of 6.3 megawatts (Mwp) which is located in Tak Province. PDIMR entered a Power Purchase Agreement with the PEA and started selling electricity from 26 December 2013 (which is the Commercial Operation Date). Currently, the project construction has been completed,and the plant is being commercially operated.

 

PPS operates one solar energy power plant with a total capacity of 1.1024 megawatts (Mwp) which is located in Khon Kaen province. PPS entered a Power Purchase Agreement with the PEA and started selling electricity from 30 June 2013 (which is the Commercial Operation Date). Currently, the project construction has been completed, and the plant is being commercially operated.

 

BAFS expects that BC will enter into a share purchase agreement with the Seller with respect to the Share Purchase Transaction on 9 December 2020.

 

The entering into of the Share Purchase Transaction is in accordance with an important strategic plan of BAFS, expanding the Company’s scope of business operations, as well as due to the widespread Coronavirus Disease (COVID-19) pandemic, the main income of the Company, which comes from the tourist industry and fossil fuels, has been affected. The expansion of the Company’s scope of business operations in renewable energy in the category of producing and distributing electricity from solar power in the three companies is a risk diversification and will generate stable income and cash flow, and also reinforces the financial stability of the Company, worthiness of the investment, and the yield that the shareholders of the Company will receive