SSP Gains 10% in Response to the Announcement of a 9.9MW Biomass Plant Acquisition

The share price of Sermsang Power Corporation Public Company Limited (SSP) rose ฿1.40/share or 9.93% to ฿15.50/share as of 15:49 local time in Thailand, with a trading value of 959 million baht, following the announcement of taking over the 9.9-MW biomass power plant project with a total value of investment of 500 million baht.

SSP’s Extraordinary General Meeting of Shareholders held on 6th July 2021, has approved the investment in a biomass power plant project with a capacity of 9.9 MW by purchasing all shares in Uni Power Tech Co., Ltd. (UPT) from existing shareholders of that company, who are connected persons of the company.

The acquisition will include the right to receive outstanding loan repayment in respect of which UPT is owed to a shareholder of UPT with a total value of investment of THB 500,000,000 including approved authorizing Mr. Varut Tummavaranukub and Ms. Thanthaporn Kraipisitkul and/or persons authorized by such persons shall have the authority to take any necessary and reasonable action for the completion of the transaction within the framework of the relevant laws.

Uni Power Tech Company Limited (UPT) operates the business of generating and distributing electricity from biomass. The company is operating the biomass power plant at the capacity of 9.9 MW located at Si-kiew Sub-district, Si-kiew District, Nakhon Ratchasima Province. The commercial operation date (COD) was May 24, 2019 with a 20 years term of electricity sale and purchase with the Provincial Electricity Authority from COD.

Mr. Varut Tummavaranukub, Chief Executive Officer of SSP, stated that the company anticipates concluding the acquisition of 49% of UPT by July 2021 and the remaining 51% by July 2022. Additionally, he mentioned that the investment in biomass power facilities is consistent with the company’s goal of increasing investment in sustainable energy. The company set a target of growing capacity to 400 megawatts over the next three to five years in order to achieve record operating results continuously.